Foot Locker reports substantial losses during its initial semester, approaching merger with Dick's Sporting Goods.
Foot Locker Acquisition by Dick's Sporting Goods Completed
Foot Locker's sale to DICK'S Sporting Goods has been finalized, marking a significant shift in the US sports retail landscape. The acquisition, which was approved by regulatory authorities, was completed on September 8.
The U.S.-based sporting goods distribution group, Foot Locker, ended the first half with losses totaling over $400 million. This loss, reported just days before the planned sale, was a contrast to the $9 million profit in the same period last year. The operating result for Foot Locker also showed losses of $297 million, a stark difference from the $9 million profit in the previous year.
Foot Locker's sales for the first half totaled $3,651 million, representing a 3.39% decrease from the first six months of the previous year. The decline was most pronounced in North America, where sales decreased by 0.7%, and in Europe, the Middle East, and Africa, where sales declined by 14.3%. Asia Pacific saw a more significant drop, with sales declining by 9.6%.
However, not all segments of the company fared poorly. Kids Foot Locker experienced a 3.3% increase in sales during the first half. Champs Sports, another division of Foot Locker, also saw a similar decline in sales during the first half.
Foot Locker shareholders approved the transaction on August 22. In preparation for its integration into Dick's, Foot Locker has rebranded itself entirely in red.
The acquisition of Foot Locker by Dick's marks a strategic move for the company, expanding its reach and solidifying its position as a major sports retail conglomerate in the US. With a network of 2,354 stores in twenty countries, along with 243 franchises in various regions, the combined entity is poised to make a significant impact in the sports retail industry.
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