The $67 million investment in Allopneus will help Michelin better understand online tire buyers, the tire maker says.
For the quarter ended Nov. 1, Foot Locker’s web sales rose by 10% to $77 million from $70 million in the third quarter of 2007. In comparison, total sales and comparable store sales dropped by 3.5% and 1.7%, respectively.
E-commerce sales lapped total revenue and comparable store sales for Foot Locker Inc. in the third quarter.
For the quarter ended Nov. 1, web sales rose by 10% to $77 million from $70 million in the third quarter of 2007. In comparison, total sales and comparable store sales dropped by 3.5% and 1.7%, respectively. Overall the web accounted for 6% of total revenue in Q3.
In the third quarter, Foot Locker, No. 51 in the Internet Retailer Top 500 Guide, reported net income of $24 million on revenue of $1.30 billion, compared with a net loss of $33 million on sales of $1.36 billion in the prior year. “Our third quarter financial results reflected the extremely challenging retail environment in the U.S. marketplace,” says CEO Matthew D. Serra.
For the first three quarters, e-commerce sales for Foot Locker increased by 10.2% to $217 million from $197 million in the previous year. Overall in the first three quarters the retailer posted net income of $45 million on sales of $3.92 billion vs. a net loss of $34 million on sales of $3.95 billion in the prior year.
In the third quarter Foot Locker purchased CCS, dELiA*s Inc.’s direct-to-consumer business targeting skateboarding teens, for $102 million in cash.
CCS sells skateboard footwear, apparel and accessories in the U.S. through catalogs and the Internet. Revenue is expected to exceed $80 million in 2009, the companies say. The typical CCS customer is a skateboarding teenage boy.
CCS will be integrated with Foot Locker’s other e-commerce businesses, Serra told analysts on the company’s third quarter earnings call. “FootLocker.com is expected to be able to contribute meaningfully to CCS` profitability by integrating most of CCS’ operational needs within their well-run and solid infrastructure,” he said.