Foot Locker bets $1.1B in two non-mall retailers

Foot Locker Inc. (NYSE: FL) is enhancing its expansion in the Asia Pacific and North America after it entered definitive agreements to acquire Text Trading Company (atmos) and Eurostar Inc. The company is diversifying its product mix and store footprint by adding top-tier products and partnerships expected to be earnings accretive this year.

Foot Locker expanding reach in the Asia Pacific

The acquisition of Text Trading Company will boost Foot Locker's reach globally given its considerable strategic foothold in Japan. Notably, atmos reported revenue of $175 million in FY2020 with 60% generated vial digital channels. Foot Locker CEO Richard A. Johnson said:

atmos Founder Hidefumi Hommyo said:

Foot Locker to acquire Eurostar

The company will also acquire Eurostar for $750 million in an all-cash transaction. Eurostar operates 93 off-mall outlets in Arizona, Nevada, Texas, and California.  Most importantly, Eurostar has deep connections with customers, and 80% of its sales come from its loyalty program members. Johnson said:

Eurostar CEO Rick Mina said: