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Foot Locker's latest acquisitions look to attract next-gen sneakerheads

·Writer
·1 min read
In this article:
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Fresh off Q2 earnings that smashed Wall Street's expectations, Foot Locker (FL) is looking to capitalize on investments to attract the next generation of sneakerheads.

In early 2019 the retailer made a $100 million investment in the online marketplace GOAT Group. "During the quarter, GOAT closed a $195 million series F round of funding. Again, confirm the market's confidence and the broader sneaker category," said Foot Locker Chairman and CEO Dick Johnson.

During a call with analysts, Johnson said that the company is looking for ways to expand the ecosystem. "In short, the strength of our business has enabled us to invest in profitable growing businesses and deploy our capital effectively to drive shareholder value," he said.

Another investment made to cultivate their deeper push into the sneakerhead community was its acquisition of streetwear brand atmos and athletic shoe retailer WSS for more than $1 billion.

HONG KONG, CHINA - 2021/04/18: Shoppers walk past the American multinational sportswear and footwear retailer, Foot Locker store in Hong Kong. (Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)
HONG KONG, CHINA - 2021/04/18: Shoppers walk past the American multinational sportswear and footwear retailer, Foot Locker store in Hong Kong. (Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)

Japanese streetwear retailer atmos brings a strong digital presence to Foot Locker's fold, with 60% of the brand's revenue coming from digital sales. The Foot Locker CEO says that he sees a path to approximately $1 billion in sales in the next five years from the $425 million in fiscal 2020 from WSS. Johnson expects both WSS and atmos to generate low double-digit sales growth annually over the next five years.

Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.

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