Foot Locker, Inc. (NYSE: FL) has partnered with brand development, marketing, and entertainment company Authentic Brands Group (ABG) to offer Reebok products in the U.S.
Under the agreement, Foot Locker will become the exclusive retailer of select Reebok footwear styles. It will offer men, women and kids’ styles at its company-owned stores and e-commerce sites in the U.S.
The deal includes exclusivity of iconic basketball footwear from celebrated collections and names such as Shaquille O’Neal and Allen Iverson.
Jamie Salter, the Chairman and CEO at ABG, said, “We are excited to partner with a retailer who holds such an important position with both sports and lifestyle audiences and look forward to driving brand heat with the new and iconic products.”
The Chairman and CEO of Foot Locker, Richard Johnson, said, “This partnership builds on our commitment to elevate the customer experience, offer consumers high heat products from the biggest brands, and build collaborations with the biggest names in sneaker culture.”
The New York-based specialty athletic retailer expects to launch an expanded collection of Reebok products across its various brands in the fall.
About Foot Locker
Foot Locker’s portfolio of brands includes Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, atmos, WSS, Footaction, and Sidestep. The company operates nearly 3,000 retail stores in 28 countries across North America, Europe, Asia, Australia, and New Zealand.
FL stock lost 2.8% on Thursday to close at $42.82.
Analysts’ Take
Recently, Deutsche Bank (NYSE: DB) analyst Gabriella Carbone maintained a Hold rating on the stock and lowered the price target to $51 from $72 (19.1% upside potential).
The analyst expects the apparel retail sector to report in-line results for the fourth quarter of 2021, as “the omicron surge and higher than expected freight and supply chain costs are likely to keep a lid on any upside.”
Further, Carbone expects first-quarter guidance to be lower than the Street’s estimates.
Overall, the stock has a Moderate Buy consensus rating based on 8 Buys, 6 Holds and 1 Sell. The average Foot Locker price target of $59 implies 37.8% upside potential. Shares have lost 20.3% over the past six months.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Foot Locker’s performance.
According to the tool, compared to the previous year, Foot Locker’s website traffic has registered a nearly 38% decline in global visits year-to-date.
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