Foot Locker to acquire Atmos and WSS
Foot Locker is to acquire Japanese streetwear brand Atmos and US athletic footwear and apparel retailer WSS in separate deals worth approximately $1.1 billion.
Atmos sells premium sneakers and apparel under an exclusive in-house label and has 49 stores around the world, including 39 in Japan. Foot Locker said the acquisition will accelerate its global reach by establishing a foothold in Japan and will also extend its premium and top-tier offering. Atmos generated approximately $175 million of revenue in its 2020 financial year, of which more than 60% came through digital channels.
Richard Johnson, chairman and chief executive of Foot Locker, said: “Atmos is uniquely positioned through its innovative retail stores, high digital penetration, and distinctive products that have made it a key influencer of youth and sneaker culture. With Atmos, we are executing against our expansion initiative in the rapidly growing Asia-Pacific market, establishing a critical entry point in Japan and benefitting from immediate scale.”
Meanwhile, WSS operates a portfolio of 93 off-mall stores across California, Texas, Arizona and Nevada and had revenue of $425 million in its last financial year. Foot Locker said it will seek to benefit from WSS’s differentiated market position, complementary customer base and real estate portfolio.
Johnson added: “WSS has built a successful, high-growth business by pioneering the neighbourhood based store model, built on community engagement and a full-family offering. This acquisition enhances our product mix and provides access to a customer base and store footprint that are both differentiated from and complementary to our current portfolio.”
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