Foot Locker Plans More CCS Stores; Entry Into Snowboarding
mike lewis
- May 26 2009
- 1,519 views
- 11 comments
While earnings calls can often be a bit tedious, especially from non-endemic companies, Foot Locker’s first quarter 2009 report was full of a ton of info on the company’s efforts to infiltrate the action sports market.
Foot Locker opened its first CCS branded store this quarter in Santa Monica, after acquiring the direct-to-consumer skateboard retailer from Delia’s for $102 million last October, and plans on rolling out more stores very soon. In fact, the second store is set to follow on June 5 in Paramus, New Jersey’s Garden State Plaza Mall.
“We have plans to very gingerly roll out CCS stores,” said Chairman and CEO Matthew Serra during the company’s annual meeting. “Action sports is a very fast-growing business. We made that acquisition because we wanted to be in it quickly.”
CCS’ offereings currently inlcude skateboard shoes, apparel and equipment, but Serra added that he hopes to enter the snowboarding market shortly.
Here are the financial highlights from the quarterly report:
Net profits for Q1 2009 - Up 90 percent
Net income Q1 2009 - $31 million, 20 cents a share
Net Income Q1 2008 - $3 million, or 2 cents. (Q1f 2008 included store-closing expenses of $3 million, and a nonimpairment charge of $15 million.)
Q1 2009 revenues dipped 7 percent to $1.2 billio, and same-store sales were off 2.4 percent.
Administrative expenses decreased $21 million from the year-ago period.
Serra says; “While we do not intend to break out our CCS results separately, I will comment that the first quarter sales were somewhat below our expectations and profits were essentially a break-even. We had plans to make additional enhancements to our websites over the next couple of months and continue to expect that CCS has an opportunity to generate a double-digit profit margin rate for the year.”
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May 26th, 2009 at 10:02 pm
Don't do it!
Snowboarding/skateboarding is oversaturated with this corperate takeover, buy my way in, squeeze the guy that built it up out crap…..this industry does not need Footlocker cashing in too….go sell scooters, snakeboards and rollerblades in Russia.
May 28th, 2009 at 5:17 am
Word is that they want to open 500 stores and go head to head with Zumiez….
May 28th, 2009 at 11:42 pm
Well you can look at this two ways bad for the core and culture,but great for the industry going more mainstream. Which in turn gives more money to trickle down in the form of health insurance for athletes and better contracts. It is to me a situation that has pros and cons. Also the companies with more money will have to be stood up to to make these important changes. TxR
May 29th, 2009 at 9:03 pm
What is core now a days…there is no such thing as core. the socalled Core shops are carrying brands that are mostly all corperate and deny the brands that share the core idea. The industry has grown up and evolved into a multi million dollar industry with world wide exposure and world wide markets have chimed in. This might be a shock, but the action sports industry is no longer core. Transition into the new era and except the evolution of the industry.
May 31st, 2009 at 8:23 pm
I'm not sure how this really trickles down to the athletes, maybe a select few. It seems the more mainstream it becomes the more the public only recognize the athletes that have t.v shows or on highly publicized contests. So the companies that have the money to get the Shecklers, Dyrdek and Whites will benifit. These other companies will not be seen as fantastic, so to speak. To the mass market. Whenever i have hear the term more money for everyone it starts to seem a little suspicious.
June 2nd, 2009 at 4:07 am
Is it true that Skaters are planning protests outside of these CCS stores with signs that say stuff like "keep the jocks out of skateboarding" and stuff like that? If there is ever one opening in our mall we will work with the mall shops to protest those guys if we have to.
June 2nd, 2009 at 6:41 pm
hey buddy fuQ u spell SKATEBOARDS rite next time
June 2nd, 2009 at 6:42 pm
keep the jocks out of our fuQin culture
June 2nd, 2009 at 11:40 pm
Keep Jocks Out? Support the Core Shops?
Pretty difficult to do this when the biggest selling and supported/represented brand in "Core" Skate shops is Nike!
Considering Footlocker is Nike's biggest customer globally I am tipping this argument is a mute point and "Done and Dusted".
Kids (8-12) wouldn't remember a time when Nike hasn't been in skateboarding. Not agreeing with it just stating the fact. Times change, and so will the industry - for better or worse who knows?