Nykaa, Metro Brands shares to remain in focus after 70% rally in THIS US footwear stock

Shares of 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 after market trading hours in the overnight trade on Wall Street.

Nykaa share price ended Wednesday's session in the red, down 0.25 per cent at ₹197.15 apiece. Meanwhile, Metro Brands share price closed yesterday's trading session in the 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 capitalisation to $1.2 billion. At the end of after-hours trading at 8 PM EST, however, Foot Locker’s stock jumped 69%, reaching $21.78.

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. However, the report, citing people familiar with the situation, said a final deal has not yet been finalised.

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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