This week, Foot Locker Inc. publicized their 2021 first-quarter earning report outlining their strategy for the remainder of the year. In the report, Foot Locker CEO and Chairman Dick Johson stated to convert a third of Footaction stores into “existing banner concepts,” i.e., Footlocker and Champs Sports, with the remaining stores set to dissolve within the two years. On the earnings call, Johnson goes into more detail.
“We are currently in the process of assessing the Footaction fleet to determine the best decision for each location. Approximately one-third of the top performance Footaction locations will be made into new Foot Locker stores establishing a bolder women’s and kids presence, as well as new Champ Sports and Kids Foot Locker stores. We are excited about the opportunities to expand our women’s and kids presence within our Foot Locker and Champs Sports stores.”
Initially purchased by Foot Locker Inc. in 2004 for $350 million from Footstar Inc., the move seems to be driven by strategy and not finances after Foot Locker Inc. has reported a net income of $202 million in Q1 2021 compared to a net loss of $110 million in Q1 2020 and states the move will enable it to serve its consumers in a post-COVID marketplace better.
Information about whether Footaction will continue its e-commerce presence and whether the Jordan Brand collaborative Flight 23 stores are affected is still unknown. Stay tuned to Nice Kicks to keep up to date on any updates on the matter.
Source: Yahoo! Finance