US sportswear retailer Foot Locker has announced the completion of its acquisition of Japan-based streetwear label Atmos, for 360 million dollars.
The acquisition reflects the New York-based retailer’s commitment to its growth strategy, stating at the time of the initial announcement that the addition will allow for a “highly strategic foothold in Japan”.
Atmos has 49 stores globally, including 39 in Japan, with the company reportedly generating 175 million dollars in revenue in its fiscal year 2020.
In a statement, Foot Locker’s chairman and CEO, Richard Johnson, said: “We deeply value Atmos’ unique brand, innovative, experiential stores, premium offerings, collaborations and understanding of sneakerhead culture.”
He continued: “Atmos expands our global reach in the rapidly growing Asia-Pacific market, establishes a critical entry point in Japan and allows us to benefit from immediate scale.”
Atmos will maintain its brand name and preserve its identity, ethos and value proposition as it transitions into the Foot Locker family.
Foot Locker also recently completed its acquisition of US-based athletic footwear retailer Eurostar Inc. (WSS), for 750 million dollars.
In September, Johnson noted in a statement: “WSS brings an expanded and differentiated customer base rooted in the rapidly growing Hispanic community, diversifies and enhances our product mix, and strengthens our footprint with a 100 percent off-mall store fleet located in key markets.”
As reported back in August, Foot Locker expects both Atmos and WSS to generate low double-digit growth annually and low double-digits to mid-teens earnings before interest, taxes and depreciation over the next five years. It expects them to be accretive to earnings per share in the fiscal year 2021.