Shares of FSN FSN E-commerce Ventures, parent company of Nykaa, and Metro Brands will remain in focus in Thursday’s trading session after US footwear stock Foot Locker surged as much as 70 per cent in US stock market’s after trading hours.
Nykaa share price ended Wednesday’s session in red, was down over 0.25 per cent to close at ₹197.15 apiece. Meanwhile, Metro Brands share price closed yesterday’s trading session in positive trajectory at ₹1,148.90 on NSE.
American athleisure and sneaker powerhouse Foot Locker officially entered the Indian market in October last year through a strategic partnership with retail leaders Nykaa and Metro Brands.
The company inaugurated its first store in New Delhi. Under this collaboration, Metro Brands will manage Foot Locker’s brick-and-mortar outlets, while Nykaa Fashion will oversee its online retail operations.
Why is Foot Locker share price in news?
Foot Locker shares jumped by as much as 70% in after-hours trading on Wednesday following a Wall Street Journal report that Dick’s Sporting Goods Inc. is in advanced negotiations to purchase the company.
Foot Locker’s stock closed at $12.87 on Wednesday, down more than 3%, bringing its market capitalization to $1.2 billion. According to a report from The Wall Street Journal, the proposed deal with Dick’s could value the company at approximately $2.3 billion—nearly double its current valuation.
At the end of after-hours trading at 8 PM EST, Foot Locker’s stock jumped 69%, reaching $21.78. According to the Wall Street Journal, which cited people familiar with the situation, a final deal has not yet been finalized.
Foot Locker operates around 2,400 stores worldwide, primarily consisting of smaller locations, while Dick’s Sporting Goods runs more than 800 large-format stores mostly located in suburban areas across the U.S. Despite their different store formats, both retailers rely heavily on sneaker sales for the majority of their revenue.
(With inputs from agencies)
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