Foot Locker’s $1.1 Billion Acquisition Binge

Evan Clark
·2 min read

Foot Locker Inc. is making a $1.1 billion post-pandemic play — jumping into the ultra-hip Japanese sneakerhead scene with a deal to acquire Atmos and tapping into the growing U.S. Latine market by scooping up WSS.

While the pandemic isn’t over, retailers of all stripes have retooled over the past year and a half and are now positioning for what comes next.

More from WWD

In Foot Locker’s case, that clearly means pulling out its wallet for some high-level, all-cash dealmaking intended to make sure the company keeps evolving with the market.

Richard Johnson, chairman, president and chief executive officer of Foot Locker, said: “The way young people live their norms, values and attitudes has been the driving force behind the evolving retail landscape. And we are focused on zeroing in on this key part of our industry. Ensuring that Foot Locker is a place young people seek out for inspiration and empowerment will give us a vital link to remaining culturally connected and staying ahead of the curve in a sneaker ecosystem.”

The $360 million deal to buy Atmos brings the company to the world of premium fashion sneakers.

Atmos sales tallied $175 million last year with more than 60 percent of the take coming through the web. The company also has 49 stores, including 39 in Japan, where it was founded.

Johnson 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.”

The company’s founder, Hidefumi Hommyo, and the rest of the Atmos team are joining Foot Locker.

Hommyo said, “Atmos was founded in 2000 as a small retail store in the back streets of Ura-Harajuku. Our passion for sneaker culture and ability to connect with our customers have been the driving forces of our growth ever since. Importantly, Foot Locker shares this passion, and we are excited to join forces with them to propel Atmos into our next phase of growth.”

In a separate deal, Foot Locker signed a definitive agreement to acquire Eurostar Inc., WSS’ parent, for $750 million. The company has 93 off-mall stores targeting Latine consumers across California, Texas, Arizona and Nevada.

Johnson noted in a statement that: “WSS has built a successful, high-growth business by pioneering the neighborhood-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.”

MORE FROM WWD:

Kate Hudson’s Fabletics Hires Banks for IPO

Vans and Supreme Power VF Corp. Gains in Quarter

Shopify GMV Rises to $42.2B, Platform Gaining Fashion Traction

Sign up for WWD's Newsletter. For the latest news, follow us on Twitter, Facebook, and Instagram.

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • What prison sentence could Trump face if he is convicted at his hush money trial?

    Republican presidential contender is the first former US president to go on criminal trial

  • Man builds entire home next to LA freeway

    Home in encampment along 110 Freeway has own front door and electricity, allowing the resident to have lights, a stove and a refrigerator

  • Smoke ‘n’ Spurs back in the saddle this summer

    PAPINEAU-CAMERON TWP., Ont. — Smoke ‘n’ Spurs rides again. From horses to horsepower, the Smoke ‘n’ Spurs festival revs it up, and this Labour Day weekend, the event rolls into its new home, in Papineau-Cameron Township, just outside of Mattawa. “Everything is wide open for us,” said Gary Anderson of the coming festival. Anderson and his wife, Jennifer, are excited to revive the festival previously held in Powassan. After six successful years, organizers decided to cancel the seventh year, and w

  • Clippers fined $25,000 by NBA for violating league injury reporting rules

    NEW YORK (AP) — The Los Angeles Clippers were fined $25,000 by the NBA on Friday for violating league injury reporting rules. The team failed to accurately disclose the availability status of Paul George, Norman Powell and Russell Westbrook before its game against Houston last Sunday, the final day of the regular season. None of the trio played and none were listed on the team's injury report as being out due to injury or rest. ___ AP NBA: https://apnews.com/hub/nba The Associated Press

  • Enterprise Group signs MOU with Treaty 8 First Nation

    Enterprise Group, an energy services consolidator, signed a Memorandum of Understanding (MOU) on April 1st outlining a business relationship with a prominent Treaty 8 First Nation, according to a news release from the company. Energeticcity.ca contacted Enterprise regarding which First Nation they signed the agreement with but did not receive a response by publication time. The MOU is an agreement to expand and further develop the business relationship between the parties, which includes Enterpr

  • UK rules out EU-wide deal on work and study visas for young people

    The government has ruled out striking an EU-wide agreement on allowing an exchange of young people to work and study for extended periods of time. On Thursday, the European Commission announced its plans to begin negotiating with members of the bloc on a joined-up approach that could be taken with the UK. The proposals related to a Youth Mobility Scheme, a deal between nations allowing 18 to 30-year-olds the opportunity to work or study for up to four years in each other's territories.

  • UPDATE 1-BOJ's Ueda says 'very likely' to hike rates if inflation keeps rising

    Bank of Japan Governor Kazuo Ueda said on Friday the central bank will "very likely" be raising interest rates if underlying inflation continued to go up. Ueda also said the central bank will find a way to reduce the amount of its Japanese government bond (JGB) purchases, though the actual timing was still undecided. Having ended its various unconventional monetary easing measures in March, the BOJ has brought more flexibility to its policy and may change its short-term interest rate target depending on how upcoming data unfold, Ueda said.

  • Most Expensive ZIP Code To Buy a Home in Every State

    If you're looking to purchase a home in a new location, you might be curious about the most expensive areas that are within your state. Depending on your income, those locations offer luxury homes...

  • Gardener ranked seventh among goaltending prospects in NHL Central Scouting final rankings

    The accolades continue for Saskatoon Blades rookie goaltender Evan Gardner. According to the team, the Fort St. John product was named seventh in NHL Central Scouting final rankings for goaltenders, released on April 16th. Gardner was ranked 16th in the previous report released in January. The 18-year-old compiled a 21-5-0-2 regular season record and a goals-against average (GAA) of 1.91, which led the Western Hockey League (WHL). Gardner also tied teammate Austin Elliot for second in the WHL wi

  • Braves ace Spencer Strider begins recovery from elbow surgery, says team can win World Series

    ATLANTA (AP) — Atlanta Braves ace Spencer Strider began to feel discomfort in his right elbow in spring training but didn't realize the severity of the injury until learning he needed season-ending surgery. Strider said he had a bone fragment develop following Tommy John surgery in 2019 that caused the ulnar collateral ligament to become unstable. Strider also said he did not have a tear that required a second Tommy John surgery and he instead had an internal brace procedure, perhaps giving him

  • Remembering Kyle Velasquez | Columbine 25 years

    In honor of the victims of Columbine on the occasion of 25 years since the tragedy, these are the inscriptions on each plaque provided by the Columbine Memorial Foundation. This is Kyle Velasquez’s tribute.

  • Snow Showers Denver Metro Area

    Snow showers swept into the Denver-Boulder area on Friday, April 19, with heavier snow expected as the day continued, the National Weather Service (NWS) said.Footage taken by Peter Ohser shows light snow falling on Evergreen, southwest of Denver, on Friday.A winter weather advisory was in effect until Saturday morning, with the NWS warning of total snow accumulations up to 10 inches. Credit: Peter Ohser via Storyful

  • Most NH-02 candidates would back Ukraine aid package

    Candidate Colin Van Ostern said his fellow Democrats should be willing to rescue Republican House Speaker Mike Johnson from attempts to take his gavel in order to get aid to Ukraine across the finish line.

  • Police looking for a man accused of robbing a bank in New Albany

    Police looking for a man accused of robbing a bank in New Albany

  • Commanders hosted 4 top QB prospects at once, and Jayden Daniels' agent wasn't happy

    The Commanders had an unusual visit with multiple QB prospects.

  • Climate targets group's CEO seeks to ease concerns over carbon offset plan

    The CEO of the Science Based Targets initiative (SBTi) on Friday sought to reassure critics' concerns over the global nonprofit's plan to allow companies to use carbon credits to offset greenhouse gas emissions from their value chain. Last week, the SBTi's staff accused the leadership of the climate targets verification group of acting without a sound scientific basis and called for the ouster of the chief executive and the reversal of the plan. Critics worry, however, that the policy could let companies off the hook when it comes to reducing emissions.

  • Hush money trial: All the wild defences Trump has given so far

    Ex-president’s team have seemingly thrown everything but the kitchen sink to try to stop or stall the former president’s first criminal trial — none of these efforts have been successful so far

  • Best Growth Stocks To Buy And Watch: See Updates To IBD Watchlists

    Find the best stocks to buy and watch by seeing which top growth stocks were just added to the IBD 50, IPO Leaders and other IBD stock lists.

  • “Our mission is to help as many people as we can"

    With the channel blocked and ships not getting through, workers used to 80-hour paychecks are now getting just a few hours. "We're daily hires, a lot of us, so it's like hitting a brick wall, the checks just stop, you're not a salaried employee they didn't know what to do," said Scott Cowan, the president of the international longshoremen's association, local 333. In the waning hours of the legislative session, the Port Act passed. READ MORE: https://www.wmar2news.com/keybridgecollapse/payments-to-port-workers-on-the-way-as-collapse-limits-hours

  • 5 Investigates: Judge rules Mass. law on 'equity theft' is unconstitutional

    Nearly a year after the U.S. Supreme Court ruled so-called "equity theft" unconstitutional, a Massachusetts judge confirmed the ruling applies to the way Massachusetts conducts tax foreclosures, pressuring lawmakers to act.