Foot Locker to buy CCS skateboard apparel biz from Delias

NEW YORK Foot Locker announced plans to buy Delias Inc's CCS business for $102 million, to help the footwear retailer boost its appeal with teenage skateboarders. The all-cash deal for CCS is expected to close within 60 days.

"We are pleased with the opportunity to significantly strengthen our balance sheet and achieve the valuation afforded to the CCS brand, particularly in this uncertain economic environment," said Robert Bernard, Delias' chief executive. "We also intend to continue to prudently manage our business and carefully allocate our capital so that we may best position our company for long-term sustainable growth."

Delias also said its core brands, dELiA's and Alloy, should generate positive earnings before interest, depreciation and amortization in the fourth quarter of fiscal 2008 and fiscal 2009, helping to send its shares up 20%.

CCS is a direct-to-consumer business that sells skateboard shoes, clothes and accessories through catalogs and the Internet. It is expected to have revenue of $80 million in 2009 and add to Foot Locker's earnings in the first full year of operation, the company said.

Delias said it will not decide how to use the proceeds from the sale until after the end of its fiscal year in February 2009. Delias shares were up 55 cents, or 22%, at $3.05 on Nasdaq, while Foot Locker shares were down 35 cents, or 2.1%, at $16.64.