NEW YORK - Foot Locker , Inc. (NYSE: NYSE:FL) has announced a multi-year partnership with the Chicago Bulls, aiming to enhance the basketball experience for fans through community events and exclusive content. The collaboration will bring a series of initiatives, including the Bulls Fest and in-store activations, to life as part of the upcoming 2024-25 NBA season.
The partnership is set to kick off with a celebration event on October 30 at the United Center in Chicago, during the Bulls game against Orlando. This event will feature various fan activities, including a Youth 3v3 exhibition game at halftime. Foot Locker's President and CEO, Mary Dillon, is scheduled to present the game ball, and the company's Stripers will serve as honorary team captains for the evening.
Foot Locker's State Street (NYSE:STT) store will host a Bulls celebration on November 2nd, offering fans the opportunity to meet players and enjoy live entertainment. Additionally, a "Tunnel Walk" series will be launched on social media, providing behind-the-scenes access to players as they prepare for games.
The partnership underscores Foot Locker's commitment to basketball culture, following a year in which the retailer has expanded its basketball-related activities. These include a multi-year agreement with the NBA as an official marketing partner, the launch of "The Clinic" with Nike (NYSE:NKE) and Jordan Brand, and the introduction of the Foot Locker 'Home Court' in NYC, developed in partnership with Nike and Jordan Brand.
Foot Locker's EVP and Chief Commercial Officer, Frank Bracken, highlighted the shared basketball legacies of the company and the Bulls, while the Bulls' Executive Vice President of Revenue and Strategy, Matt Kobe, expressed excitement about engaging fans through the partnership.
This collaboration is part of Foot Locker's broader efforts to connect with basketball fans and communities, both locally and globally. The company has been a prominent figure in sneaker culture for five decades and continues to foster connections within the basketball community.
Foot Locker's initiatives and latest developments can be found on their website, and the information for this article is based on a press release statement.
In other recent news, Foot Locker has reported a slight beat in sales, EBIT, and EPS for the second quarter of 2024, largely due to robust comparable store sales in North America and the EMEA region. However, the company has revised its gross margin forecast for the full fiscal year 2024 downward due to increased promotional activities. Barclays has maintained an Overweight rating on Foot Locker shares, showing confidence in the company's LaceUp Plan aimed at driving a turnaround. Baird, on the other hand, has reduced its price target for Foot Locker from $35.00 to $27.00, maintaining a Neutral stance due to concerns over the retailer's short-term prospects. In addition, the U.S. Securities and Exchange Commission has charged a former senior director at Foot Locker with insider trading. The company is also undergoing strategic changes, including winding down operations in South Korea and parts of Europe, relocating its headquarters to St. Petersburg, Florida, and expanding its "Reimagined" store concept to reach a 25% e-commerce penetration by 2026.
InvestingPro Insights
As Foot Locker embarks on this exciting partnership with the Chicago Bulls, investors may be curious about the company's financial health and future prospects. According to InvestingPro data, Foot Locker's market capitalization stands at $2.25 billion, reflecting its significant presence in the retail sportswear market.
Despite recent challenges, there are positive indicators for the company. An InvestingPro Tip suggests that net income is expected to grow this year, which aligns with the company's strategic initiatives like the Bulls partnership. This growth expectation is particularly noteworthy given that Foot Locker was not profitable over the last twelve months, with a negative P/E ratio of -6.11.
Another InvestingPro Tip highlights that Foot Locker has maintained dividend payments for 21 consecutive years, demonstrating a commitment to shareholder returns even during challenging periods. This long-standing dividend history could be appealing to income-focused investors.
It's worth noting that Foot Locker's revenue for the last twelve months as of Q2 2023 was $8.15 billion, with a slight decline of 1.88% year-over-year. However, the quarterly revenue growth of 1.93% as of Q2 2023 suggests a potential turnaround, which could be further bolstered by strategic partnerships like the one with the Chicago Bulls.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 6 more InvestingPro Tips available for Foot Locker, providing a deeper understanding of the company's financial position and future outlook.
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