MOSS ADAMS CAPITAL: Apparel and foowear market monitor highlights notable deals, stock prices and results.
Details on Industry Insight.
Skate shoes were a major driver of Journeys 4 percent comp increase in the third quarter, executives from parent company Genesco said during an earnings conference call yesterday.
The company believes skate and women's boots are a key advantage for Journeys heading into the holiday season. The company expects Journeys comps in the fourth quarter to range from down low-single digits to up low-single digits.
Genesco CEO Bob Dennis said during the conference call that skate will continue to be a key category for Journeys for spring.
Journeys will have 819 stores by the end of its fiscal year.
In other skate news, Foot Locker executives commented last week during the company's earnings conference call on its purchase of online skate retailer CCS.
Here's what Foot Locker CEO Matthew Serra said about the purchase according to the Seeking Alpha transcript:
"FootLocker.com is expected to be able to contribute meaningfully to CCS's profitability by integrating most of CCS's operational needs within their well-run and solid infrastructure. CCS is the leading retailer in the US that sells skateboard footwear, apparel, and accessories, through the Internet and catalogues.
"Through this acquisition we acquired a strong management team that have strong relationships and proven experience in merchandising the action and extreme sports product categories.
"Our plan is for the CCS team to continue to manage the CCS business and report to our CEO at FootLocker.com/Eastbay thereby enhancing our ability to gain the full operating efficiencies of our existing direct to customer business.
"We expect that this acquisition will be accretive to our company during 2009."