CIT: West Coast team featured in Fashion Manuscript.
FSG LAWYERS: Represented Loomworks Apparel (P.J. Salvage) on its acquisiton by Delta Galil.
Details on Industry Insight.
Online skate retailer CCS has opened a brick-and-mortar store in Santa Monica and another test store will open in June at the Garden State Plaza mall in New Jersey.
Foot Locker acquired CCS, an important account for skate shoe, hardgoods and apparel companies, in the fall of 2008.
"We view (CCS) as a very good acquisition and we are looking for growth," Foot Locker CEO Matthew Serra said Friday according to a transcript of the company's earnings conference call.
In the first quarter, however, Foot Locker said CCS sales were weaker than planned.
CCS results were "somewhat below our expectations and profits were essentially break even," Serra said.
Foot Locker expects CSS to generate a double-digit profit margin for the year.
In Santa Monica, a former Champs store was converted into the CCS store. Foot Locker owns Champs as well.
In other skate news for Foot Locker, executives said the company is launching a large skate initiative in a "significant" amount of its European stores.
"We view that market over there as right for that category," Serra said "It's a growing business."
Vulcanized shoes are another hot trend that is "developing rapidly" in the global marketplace. He said vulcanized styles from Nike, Adidas, Puma and Converse are performing particularly well.
"We continue to see no letdown in the growth of our Chuck Taylor business from Converse," he said.
Sales: down 7.1 percent to $1.2 billion
Net income: Rose 47 percent to $31 million vs. the same period last year. Profits improved due to leaner inventory levels (down 11.1 percent vs. the same quarter last year) and reduced promotional activity.
Total same-store sales: down 2.4 percent
U.S. same-store sales: down low-to-mid single digits
Europe same store sales: up low single digits
Canada: up low single digits
Asia Pacific: up low double digits
Cash: Foot Locker ended the quarter with $431 million in cash and short-term investments.
Debt: The company has $142 million in debt. It just signed a new four-year credit agreement for $200 million in revolving credit that can expand to $300 million in certain circumstances.
Stores: The company operates 3,633 stores around the world.