Foot Locker (FL) has announced that it’s acquired streetwear brand atmos and athletic shoe retailer WSS for more than $1 billion. The move looks to capitalize on Foot Locker’s moniker, “Inspire and empower youth culture.”
The acquisition of atmos, which was founded in Japan in 2000, will go a long way in giving Foot Locker a footing in the Japanese streetwear market.
“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,” said Foot Locker Chairman and CEO Dick Johnson.
atmos generated approximately $175 million of revenue in its fiscal year 2020, more than 60% of which was generated through digital channels.
Foot Locker purchased the brand for $360 million. According to Foot Locker officials, it will operate as a new banner within Foot Locker’s portfolio but will maintain its name.
Foot Locker also purchased athletic-inspired retailer WSS (Eurostar, Inc.) for $750 million. The retailer maintains a strong presence in the American Southwest. The brand operates 93 stores across California, Texas, Arizona, and Nevada and has been popular with the Hispanic community.
WSS generated approximately $425 million in revenue in its fiscal year 2020 and a three-year revenue CAGR of approximately 15%. According to Foot Locker, the acquisition is expected to be accretive to Foot Locker’s earnings per share in the fiscal year 2021.
“WSS has built a successful, high-growth business by pioneering the neighborhood-based store model, built on community engagement and a full-family offering,” said Johnson.
“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.”
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.