Global Sports leaps to new categories and signs with Kmart’s Bluelight
King of Prussia, PA-based Global Sports Inc., a leading developer of
e-commerce sporting goods stores, is expanding its business into new
categories by signing up Kmart Corp’s Bluelight.com online store. Global Sports will provide fulfillment, technology and customer service for electronics, toys, kitchen, bedroom and bath products and jewelry. The company says other categories are likely to be added over time.
Global Sports has developed and operates 21 e-commerce sporting goods stores for NFL teams and top sporting goods names such as The Sports Authority and The Athlete’s Foot.
Under the agreement with Kmart, Kmart will select the merchandise to be sold
on the site, own the inventory and compensate Global Sports for its services
through a combination of fixed fees and a percentage of sales. The companies
did not disclose those fees. The agreement will extend Global Sports into
several new merchandise categories and the company plans to pursue other
opportunities outside of sporting goods.
Global Sports says the move into new categories supports its efforts to become
profitable by next year. The company also is projecting better than expected
financial results for the fourth quarter and fiscal year 2001. Net revenue
for Q4 is expected to exceed $50 million. Pro forma operating profit is expected to exceed $2 million. For fiscal year 2002, net revenue is expected to exceed $185
million.
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