US: Foot Locker to close its 22 CCS skatewear stores
By Leonie Barrie | 11 March 2013
Specialty athletic retailer Foot Locker Inc is to close its 22 underperforming CCS skatewear stores and focus solely on the banner's online business.
"We have made a strategic decision to focus our future efforts in the skate category on our core online business," chief financial officer Lauren Peters told analysts on Friday (8 March). "We believe we have the scale and expertise to be successful."
Peters added: "We will operate the banner as a digital-only business and so we intend to close the 22 CCS stores in the current quarter due to their ongoing underperformance."
The comments came as Foot Locker was hit by a $12m pre-tax impairment charge related to its CCS business during the fourth quarter.
Despite the charge the retailer's net income jumped 28% to US$104m in the three months to 2 February, from $81m last year. The New York-based company said adjusted income reached $111m.
Foot Locker bought CCS from Delia's Inc in November 2008 in a US$103.2m deal. At the time it said CCS would help it to expand in the rapidly growing action and extreme sports categories.
Sectors: Apparel, Footwear, Retail
Companies: Foot Locker, Delia’s Inc
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