bucksaw87
09-29-2008, 06:32 PM
yessir, your good ol' friends at CCS will be under new ownership soon.
Foot Locker To Buy Delia's CCS Unit For $102 Million
September 29, 2008: 09:16 AM EST
DOW JONES NEWSWIRES
Foot Locker Inc. (FL) will buy direct-to-consumers business CCS from Delia's Corp. (DLIA) for $102 million as the specialty athletic retailer looks to expand its offerings in the skateboarding apparel category.
Shares of Delia's, a teen-apparel retailer, jumped 16% to $2.90 premarket while Foot Locker was inactive at $16.99. Delia's stock has lost nearly half its value in the past year.
CCS sells skateboard footwear, apparel and accessories through catalogs and the Internet. CCS revenue is expected to surpass $80 million in 2009 and Foot Locker said expanding its offerings in the skateboarding area would help broaden its appeal to teenaged males, CCS' target customers.
The deal is expected to close within the next 60 days. And in connection with the sale, teen apparel retailer Delia's agreed to acquire intellectual property used at CCS from Alloy Inc. (ALOY) for $9 million. Foot Locker will ultimately get that property.
Foot Locker expects the purchase to boost earnings the first year after closing, and the company said the deal highlights its "strong financial position."
Foot Locker swung to a profit in its most recent reporting quarter as smaller- than-expected markdowns helped the company expand its gross margin.
-By Kerry E. Grace
Foot Locker To Buy Delia's CCS Unit For $102 Million
September 29, 2008: 09:16 AM EST
DOW JONES NEWSWIRES
Foot Locker Inc. (FL) will buy direct-to-consumers business CCS from Delia's Corp. (DLIA) for $102 million as the specialty athletic retailer looks to expand its offerings in the skateboarding apparel category.
Shares of Delia's, a teen-apparel retailer, jumped 16% to $2.90 premarket while Foot Locker was inactive at $16.99. Delia's stock has lost nearly half its value in the past year.
CCS sells skateboard footwear, apparel and accessories through catalogs and the Internet. CCS revenue is expected to surpass $80 million in 2009 and Foot Locker said expanding its offerings in the skateboarding area would help broaden its appeal to teenaged males, CCS' target customers.
The deal is expected to close within the next 60 days. And in connection with the sale, teen apparel retailer Delia's agreed to acquire intellectual property used at CCS from Alloy Inc. (ALOY) for $9 million. Foot Locker will ultimately get that property.
Foot Locker expects the purchase to boost earnings the first year after closing, and the company said the deal highlights its "strong financial position."
Foot Locker swung to a profit in its most recent reporting quarter as smaller- than-expected markdowns helped the company expand its gross margin.
-By Kerry E. Grace