05 Aug Foot Locker Accelerates Asia-Pacific Expansion With Acquisition Of Atmos
Foot Locker Inc. announced it has entered into a definitive agreement to acquire Text Trading company, K.K., which owns and licenses the Atmos brand, a digitally-led retailer headquartered in Japan, for $360 million. The transaction will be funded with the company’s available cash.
Foot Locker said Atmos is a culturally connected brand featuring premium sneakers and apparel, an exclusive in-house label, collaborative relationships with leading sneaker vendors, experiential stores, and a strong omnichannel platform.
Atmos’s base of 49 stores worldwide, including 39 in Japan, operates under the Atmos banner and Atmos Pink, its women’s brand.
The acquisition of Atmos will accelerate Foot Locker’s global reach with a strategic position in Japan, while extending the company’s premium and top-tier offerings.
Atmos generated approximately $175 million of revenue in its fiscal year 2020, more than 60 percent of which was generated through digital channels. The acquisition is expected to be accretive to Foot Locker’s earnings per share in fiscal year 2021.
Richard A. Johnson, chairman and CEO, Foot Locker, Inc. said, “Atmos is uniquely positioned through its innovative retail stores, high digital penetration, and distinctive products that have made it a key influencer of youth and sneaker culture. With Atmos, we are executing against our expansion initiative in the rapidly growing Asia-Pacific market, establishing a critical entry point in Japan and benefitting from immediate scale. We are thrilled to bring Atmos into our portfolio of brands and build on the strong foundation of this differentiated business. We look forward to welcoming Atmos’s highly respected founder, Hidefumi Hommyo, who is considered one of the most influential people in streetwear and sneaker culture, along with the rest of the valued Atmos team and their customers, to the Foot Locker family.”
Hidefumi Hommyo, founder, Atmos, said, “Atmos was founded in 2000 as a small retail store in the back streets of Ura-Harajuku. Our passion for sneaker culture and ability to connect with our customers have been the driving forces of our growth ever since. Importantly, Foot Locker shares this passion, and we are excited to join forces with them to propel Atmos into our next phase of growth.”
Johnson continued, “In addition to this highly strategic transaction with Atmos, we also separately announced today an acquisition that enhances our positioning in North America. Both transactions reflect our commitment to our growth strategy and engaging with new and incremental consumers. With our ongoing investments in the business, we are confident in our ability to continue creating significant long-term value for our shareholders, consumers, vendor partners, and other stakeholders.”