Skateboarding sure ain’t what is used to be and I certainly don’t see it going back to that. In a way its personality has been lost and replaced with a prepped speech by some big wigs. Well, this shit happens with almost everything, just stay true to the sport and keep them small businesses, media outlets, and shops afloat, especially now in this trying time.
Footlocker is set to buy CCS at $102 million! I guess catering to a bunch of mall rats with stinky basketball shoes the past some 30 years or so, paid off. I can see it now: some ugly-ass moon shoes displayed right next to a pair of sleek Vans in the next CCS catalog. Or better yet, how about a tacky TapOut shirt right next to a pair of sweet Altamont jeans, that will surely bring the “bros” and skaters together. Read the press release below for more info:
Foot Locker Inc. (FL) will buy direct-to-consumers business CCS from Delia’s Corp. (DLIA) for $102 million as the specialty athletic retailer looks to expand its offerings in the skateboarding apparel category.
Shares of Delia’s, a teen-apparel retailer, jumped 16% to $2.90 premarket while Foot Locker was inactive at $16.99. Delia’s stock has lost nearly half its value in the past year.
CCS sells skateboard footwear, apparel and accessories through catalogs and the Internet. CCS revenue is expected to surpass $80 million in 2009 and Foot Locker said expanding its offerings in the skateboarding area would help broaden its appeal to teenaged males, CCS’ target customers.
The deal is expected to close within the next 60 days. And in connection with the sale, teen apparel retailer Delia’s agreed to acquire intellectual property used at CCS from Alloy Inc. (ALOY) for $9 million. Foot Locker will ultimately get that property.
Foot Locker expects the purchase to boost earnings the first year after closing, and the company said the deal highlights its “strong financial position.”
Foot Locker swung to a profit in its most recent reporting quarter as smaller- than-expected markdowns helped the company expand its gross margin.