Foot Locker (FL) has made the biggest investment in its history with a $100 million stake in GOAT Group. Foot Locker stock fell.
Foot Locker has taken a strategic minority position in the firm through its 1661 subsidiary. The companies plan to combine their efforts across digital and physical retail platforms.
Under the terms of the deal Scott Martin, Foot Locker’s senior vice president of strategy and store development, will join the GOAT Group board.
The move will provide sneaker collectors with an added avenue for hunting down shoes, as Foot Locker stores will be used to promote secondary market offerings.
“Foot Locker will support our primarily digital presence with physical access points worldwide, bringing more value to our community of buyers and sellers,” GOAT Group founder and CEO Eddy Lu said in a press release. “Having Foot Locker as a strategic partner will also expand our business as we continue to scale our operations both domestically and internationally.”
GOAT Bucks Foot Locker Stock
Shares of the athletic gear retailer closed down 0.2% at 56.57 on the stock market today. Foot Locker stock is nearing a buy point of 57.42 from a 30-week cup with handle base, MarketSmith analysis shows. Its relative strength line has been trending strong upward since Sep. 14. However its IBD Composite Rating is a mediocre 68. Foot Locker stock is up 7% so far in 2019.
GOAT, which takes its name from the sporting acronym for Greatest Of All Time, was established by Lu and college friend Daishin Sugano in 2015. It was founded as a platform to help collectors obtain genuine shoes, due to the preponderance of fakes on sites such as eBay. The firm takes a 10%-30% cut of transactions.
The move sees Foot Locker staking a position in the popular sneaker-head movement, whose members collect rare athletics shoes. Basketball and skateboarding sneakers are two of the most popular categories. Its birth is traced back to the 1980s, and the emergence of the Nike (NKE) Air Jordan line and hip hop music.
Foot Locker has made a number of investments of late. Last month it took stakes in women’s luxury activewear brand Carbon38 and children’s lifestyle brand Super Heroic. It also made a strategic investment in shoe design academy Pensole.
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