Future Group exits JV with Skechers

Last year, Future Group, which also owns footwear brands such as Lee Cooper, Converse, and Clarks, said it expects to clock Rs2,500 crore in revenue from footwear sales in 2019.

Future Group has exited its joint venture with US lifestyle and footwear brand Skechers, which will run the Indian operations independently. While the company didn't disclose the deal size, officials said Skechers paid nearly Rs580 crore for the 49% stake that it doesn’t hold in the JV.

“Few markets match the potential for growth of India, which is why we entered the market initially, and why we recently decided to purchase the minority stake in our joint venture,” said David Weinberg, chief operating officer of Skechers. ET reported the deal first in December last year.

In India -- popular rival brands Reebok, Adidas, Nike and Puma -- are much bigger in size and are also positioning their merchandise beyond lifestyle and cricket into products that can be associated with most sporting activities. Last year, Future Group, which also owns footwear brands such as Lee Cooper, Converse, and Clarks, said it expects to clock Rs2,500 crore in revenue from footwear sales in 2019.

The American brand, that entered the country in 2012 has been doubling its business with plans to add own manufacturing units and newer categories. Globally, the retailer sells watches, apparels, socks and sunglasses among other merchandise. The brand has about 223 stores including 61 doors that are company owned.

The second largest athletic footwear brand in the US, said an additional 80 -100 stores are being planned for 2019—of which about 20 will be owned and operated by them directly. “The effort of our team has resulted in significant growth as illustrated in our year-over-year numbers—2018 saw double digit increases in wholesale and retail sales and an 80 percent increase in pairs sold, reaching 2.7 million," added Weinberg in a statement.
Source:https://retail.economictimes.indiatimes.com/news/apparel-fashion/footwear/future-group-exits-jv-with-skechers/67958046

Popular Posts