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Foot Locker pivots away from malls

Yahoo Finance Live anchors break down the chart of the day.

Video transcript

- Well, today's Chart of the Day comes from Foot Locker earnings, the company moving full speed ahead on a strategy to have more locations outside of the traditional malls that shoppers are used to seeing Foot Lockers in. And, Akiko, you can see that through their earnings. Again, this coming from their actual deck in the presentation this morning, showing 494 stores.

They've been growing the share of Foot Locker stores that are outside of a mall. Also keep in mind they had the acquisition of WSS and Atmos, very prominent streetwear brands, and also local brands on the West Coast, that are oftentimes outside of a traditional mall. So a big pivot for the company.

- Yeah. This has been an interesting change [INAUDIBLE] evolution for the company because I'm thinking back to last August-- it was last August, right, when they announced this acquisition of Atmos?

- Yep. Last year.

- And my first thought-- because I love Atmos--

- Yep. Me too.

- --is, why is Foot Locker going out and acquiring this company, which I didn't see side by side, but that points to your point, this evolution of Foot Locker the brand itself that they're going for. Is it a different demographic? Or is it just that they just see more opportunities outside of malls?

- So, I mean, I'm a shoe guy. Even though I don't have my shoes in my backdrop anymore. I've been trying to advocate for getting them on this backdrop here. But I have bought a lot of sneakers from Atmos. They had a location down in DC. They actually bought [INTERPOSING VOICES]

- It's huge in Japan.

- It's huge in Japan. And it was just like cool type of shop. They have very curated selection of clothes. And the sneaker drops are very exclusive. And when Foot Locker bought them, my first thought was, well, that's--

- Why is a mall brand buying Atmos?

- That's kind of not that cool. And I think that there is kind of this social factor of people walking around the mall with a Foot Locker bag that's so prevalent. And it's kind of like-- it takes away from the exclusivity, which is a huge part of the sneaker culture. So I think Foot Locker is intent on keeping the Atmos brand kind of independent outside of the mall. And in fact, they probably want to use what they're learning from Atmos to scale that to the way that they have releases in their Foot Locker brands. So we'll see if that story works out for them. But at least for now, I'm not going to be shopping in a Foot Locker. But I don't know. We'll see if I stop by one of their Atmos stores--

- I can't remember the last time I stepped in one.

- --sometime soon.

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