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Skateboarding News

Monday, March 11, 2013

CCS will close all its stores and focus on the on-line business

Foot Locker reported today that it will be closing the 22 CCS brick-and-mortar store locations due to under performance, making the CCS division of its business digital only, according to a conference call led by Lauren Peter, executive VP and chief financial officer, who added that the company hopes to re-tool its strategy for the core skate market by focusing on the online business.

TransWorld Business was able to learn more from a spokesperson from Foot Locker’s Investor Relations Group, who says that CCS’s online business will continue as it has in the past, and that the company will offer as many associates as possible the opportunity to transition to other positions within the Foot Locker umbrella.

“ was an online-only business when we acquired it in 2008,” the spokesperson says. “We tested the viability of operating CCS stores, but the stores did not pass our return hurdles. As a result we are returning to the digital-only model.”

Foot Locker was not able to disclose specific numbers on CCS’s earnings for 2012 and Q4, and also was not able to outline the specifics of the company’s new capital expenditure plan in regards to CCS. In addition to the 22 CCS locations that will be shuttered, Foot Locker also plans to close another 88 stores, bringing the total of closed stores to 110 locations across the Foot Locker brand, mostly throughout U.S. divisions. “Part of our strategy to improve overall productivity measures involves closing underperforming stores,” the spokesperson added.

Foot Locker’s net income of $104 million, or $0.68 per share, for the 14 weeks ended February 2, 2013, included an after-tax charge of $7 million, or $0.05 per share, for the impairment of certain tangible and intangible assets related to the company’s CCS division. According to the conference call, part of the impairment expenditures come from exiting leases and severances, and the charge will be reflected at about a penny per share in the fourth quarter, according to Peter.

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posted by Xavier Lannes @ Monday, March 11, 2013 


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