On Thursday, January 3rd, Foot Locker (NYSE:FL) announced that it invested $3 million in Super Heroic Inc. The latter is a clothing and shoe company for children. It’s good news for Super Heroic; this is because the minority stake has brought the total investment in the company to $10 million.
Now that the news is out, FL stock has moved into the green zone—but that’s not the only thing Foot Locker investors should be celebrating.
Foot Locker Invests $3 Million, FL Stock Jumps
Under the terms of the deal, Kids Foot Locker will become the first conventional retail store to carry merchandise created by Super Heroic in the United States. The company will also serve as a board advisor to Super Heroic, allowing it to be part of various growth initiatives.
“We are excited to partner with Super Heroic,” said Foot Locker CEO Richard Johnson. He went on to explain that Super Heroic shares FL’s “deep commitment to empowering children through innovative athletic products.”
At the time of writing, FL stock is up 1.35%. Its trading price is around $53.
Meanwhile, Super Heroic shares the same excitement as Foot Locker. “We are excited to partner with Foot Locker,” stated Jason Mayden, CEO of Super Heroic, based in Oakland, California. “This partnership marks an important milestone for Super Heroic,” adding that it “validates the significant progress we have made since our founding,” which was a little over two years ago.
What do you think about the Foot Locker investment? Does it give this brick-and-mortar retail store a competitive edge? Moreover, do you think the news has the ability to send FL stock even deeper into the green zone before the closing bell rings?
Let us know what you think in the comments below! And make sure you stay updated on any news regarding this partnership in the coming weeks!
Featured Image: Depositphotos/boggy22