Nykaa’s share price continued to make gains for the second straight session on Thursday morning.
What Happened: Foot Locker Inc, a renowned athletic retailer based in New York, has revealed its long-term alliance with Nykaa Fashion. The omnichannel retailer made the announcement on Wednesday evening.
Nykaa Fashion will be the exclusive e-commerce associate, running Foot Locker’s India website and selling authorized merchandise on Foot Locker branded shop on Nykaa's existing e-commerce platforms.
Foot Locker’s portfolio of brands includes Kids Foot Locker, Champs Sports, WSS, and atmos. As of January this year, it operates a total of 2,714 retail outlets. Additionally, the company retails products from globally renowned brands such as Nike, Jordan, Adidas and Puma.
Metro Brands Limited (MBL), one of the biggest footwear speciality retailers in India has also partnered with the sneaker company. The agreement terms grant MBL exclusive operation rights for Foot Locker stores in India and the sale of authorized merchandise.
The partnership is expected to tap into the growing demand, with predictions suggesting that by 2028, the sneaker segment in India will hit the 66 million pairs mark. This will contribute to the flourishing sneaker and fashion industry in India.
Earlier this month, the company posted its results for the quarter ended September. The company reported a 50% surge in net profit to ₹7.8 crore in the second quarter, compared to ₹5.2 crore earned in the same quarter the previous year. The growth was majorly fueled by its fashion division, which witnessed a robust demand in the quarter.
Price Action: Nykaa’s share price was up 2.29% to trade a ₹176.20 at market open on Thursday.
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