Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nyse  >  Foot Locker    FL


News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Foot Locker : In a sneaker market dominated by resale, Foot Locker is aiming to stay relevant

share with twitter share with LinkedIn share with facebook
share via e-mail
02/12/2019 | 10:35am EDT

Last week, Foot Locker invested $100 million into sneaker resale platform GOAT, which merged with boutique brick-and-mortar sneaker reseller Flight Club last year. The investment is reportedly the largest ever single investment into a sneaker resale platform, dwarfing other similar investments like the $44 million investment StockX got from Google's investment arm GV and Battery Ventures last year. (Stadium Goods received an undisclosed amount from LVMH in February of 2018.)

This news is proof that sneaker resale is a huge market. The major platforms like GOAT, StockX and Stadium Goods are all worth well over $100 million each. Stadium Goods was acquired by Farfetch earlier this year for $250 million. While Foot Locker is by no means a bit player in the sneaker world, it is clear that resellers have a lot of buzz and dollars floating around them. By investing heavily into GOAT, Foot Locker seems to be planning for the future by making itself more visible to lucrative sneakerheads.

"The greatest benefit to Foot Locker in investing in GOAT is the potential to elevate its brand among sneakerheads," said David Naumann, vice president of marketing at Boston Retail Partners. "Sneakerheads are extremely passionate. Associating Foot Locker with GOAT and making their stores a location to order or pick up their cool shoes will make sneakerheads think more highly of Foot Locker. They may even pick up another standard shoe or T-shirt or something while they're in the store."

Foot Locker has also recently invested $15 million in women's luxury activewear retailer Carbon38 and $2 million in the Pensole Footwear Design Academy.

According to the joint announcement from GOAT and Foot Locker on Friday, the investment is the preliminary step of an ongoing partnership, which will see the companies combining their resources in physical and digital retail.

While Foot Locker does not have the same breadth of inventory as GOAT (Foot Locker typically only sells recent releases, while Goat has rare sneakers from years past), it does have a substantial physical presence and distribution network through the U.S., with stores in almost every state in the country. This physical presence is something that GOAT, which only has three stores in Miami, New York and Los Angeles, does not have.

"I see this as a smart move for Foot Locker and the secondary selling community as a whole," said Michael Sharp, co-founder and CEO of creative agency Standard Black. "Foot Locker gets to participate at ground zero for sneaker culture, and GOAT's mobile technology will allow them to have more seamless sneaker releases in the future. Foot Locker has had a few hiccups with their app crashing for sneaker launches and this should correct it."

The investment also echoes an idea that has been floating around the sneaker world for a while: that the primary and secondary markets are coming together. As explained by Josh Luber, the founder of StockX, it is inevitable that primary retail and secondary retail will converge. He cited StubHub as an example of a secondary market upstart that eventually became a major figure in how the primary market of event tickets were sold.

"I suspect that what happened at both of those companies is that they are looking at their customers and recognizing that they are not competitive with each other, but that the same people have interest in both Foot Locker and GOAT," said Corey Pierson, CEO of customer analytics platform Custora. "If that's the case, there's all the more reason for them to work together. But you also have the ability to enrich both without cannibalizing or stepping on each other's toes."

But there is a possibility that Foot Locker's play here could backfire. Jonathan Treiber, CEO of Revtrax, mostly agreed that Foot Locker's investment is a smart way to stay relevant in the changing sneaker market, but he also noted that Foot Locker needs to be proactive about ensuring that its own business remains up-to-date, rather than just relying on GOAT.

"Without the strategic partnership to provide physical locations to GOAT and block out the competition, they're really just holding an expensive lottery ticket that would produce capital gains without any operational benefits," Treiber said. "If I had to guess, Foot Locker paid a premium in valuation to GOAT for these potential benefits. The question is whether Foot Locker could have invested $100 million in their store experiences, exclusive offerings or elsewhere to drive better business results in the mid-term."

The post In a sneaker market dominated by resale, Foot Locker is aiming to stay relevant appeared first on Digiday.

© Copyright © 2019 Digiday, All rights reserved., source Journals

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on FOOT LOCKER
04/17FOOT LOCKER : Ex-dividend day for
04/02FOOT LOCKER : Management's Discussion and Analysis of Financial Condition and Re..
04/02FOOT LOCKER, INC. : Change in Directors or Principal Officers (form 8-K)
03/28FOOT LOCKER, INC. : Regulation FD Disclosure, Financial Statements and Exhibits ..
03/19FOOT LOCKER : Unveils Latest Extension Of Its 'Discover Your Air' Platform For N..
03/01Gap and Foot Locker jump while Tesla and Kroger tumble
03/01MARKET SNAPSHOT: S&P 500 Closes Above 2,800 For The First Time In Nearly 4 Mo..
03/01FOOT LOCKER : US stocks rise on hopes for a trade deal with China
03/01GLOBAL MARKETS LIVE : Tesla, Tata, MUFG, Shell…
03/01MARKETS RIGHT NOW : Stocks surge on US-China trade deal hopes
More news
Financials ($)
Sales 2020 8 269 M
EBIT 2020 766 M
Net income 2020 559 M
Finance 2020 727 M
Yield 2020 2,57%
P/E ratio 2020 11,57
P/E ratio 2021 10,53
EV / Sales 2020 0,72x
EV / Sales 2021 0,69x
Capitalization 6 702 M
Duration : Period :
Foot Locker Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FOOT LOCKER
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 70,3 $
Spread / Average Target 18%
EPS Revisions
Richard A. Johnson Chairman, President & Chief Executive Officer
Lauren B. Peters Chief Financial Officer & Executive Vice President
Pawan Verma Chief Information & Customer Connectivity Officer
Cheryl Nido Turpin Independent Director
Dona Davis Young Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
FOOT LOCKER12.16%6 702
KERING24.00%72 912
ROSS STORES17.52%35 928
HENNES & MAURITZ32.65%26 219