Sponsors
Billabong ▼ -0.010 | PPR ▲ +0.80 | American Apparel ▲ +0.07 | The Buckle ▼ -0.99 | Columbia ▼ -0.38 | Deckers Outdoor ▼ -1.94 | Dicks ▼ -0.92 | Foot Locker ▼ -4.02 | Genesco ▼ -3.05 | Iconix Brand Group ▼ -2.52 | Jarden Corp ▼ -0.17 | Nordstrom ▼ -0.42 | Luxottica ▲ +0.45 | Nike ▼ -2.24 | Pacific Sunwear ▼ -0.05 | Skullcandy ▼ -0.04 | Sport Chalet - 0 | Urban Outfitters ▼ -0.15 | VF Corp ▼ -1.17 | Quiksilver ▲ +0.46 | Zumiez ▼ -0.62 | Macys ▼ -1.48 | Tillys ▲ +0.15 |
Ticker Sponsor
Readers Say
Great insight into the issues
Great insight into the issues

I am a big fan of Tiffany and her team as well as an avid reader of Shop-Eat-Surf. I shop, I eat, I surf -- I should pay.

- By Kevin Bailey, President, Vans
The one, undisputed leader
The one, undisputed leader

It is common knowledge in our industry that there is one undisputed leader in reporting on the topics, businesses and trends that impact all of us the most, and it is shop-eat-surf.com. Their access to those who make our industry happen is second to none, and we value not only the content of their reporting but the editorial thought on what it all means both in the present as well as the future. If we were asked to give a rating, it would be five out of five stars.

- By Craig Levra, CEO, Sport Chalet
Industry Insight

AGENDA: GroupY's Emerge brand-building conference returns on Jan. 6.
SURFRIDER: "Protect What You Love" holiday appeal.
MOSS ADAMS: Plan now for tax season.
Details on Industry Insight.


Tiffany Montgomery
Print This Article

Foot Locker expanding in skate in 2009

By Tiffany Montgomery
March 06, 2009 6:49 AM

One of Foot Locker's key initiatives in 2009 is to expand its skate shoe business, company executives said in a conference call with investors yesterday.

In addition to capitalizing on its recent acquisition of online skate retailer CCS, the company plans to expand the skate category in its brick-and-mortar stores.

Here are some excerpts from CEO Matthew Serra's comments about action sports and skate during the conference call:

"... We believe that we have a very meaningful opportunity in 2009 to enhance our business by expanding further in the action sports categories.

"Our purchase of CCS was a significant step in capitalizing on this opportunity. Our fourth quarter profit from CCS was in line with our expectation. ... CCS has an opportunity to generate double digit operating profit margins during 2009, in line with those of Footlocker.com.

"Additionally, we will continue to pursue opportunities to expand our skate business in the bricks and mortar segment of our business."

Other interesting notes from the call:

- While same-store sales declined 7.3 percent in the fourth quarter, the company's gross margin rate increased 330 basis points because Foot Locker saw the slowdown coming and reduced inventories and cut operating expenses. That meant they did not have to be promotional to chase sales.

- The company ended the year with inventories 13 percent lower than the same period last year.

- Tapout is a new apparel line in Foot Locker stores and the company said it is doing well.

- CCS was accretive to earnings in the fourth quarter.

 


Articles You Might Have Missed