Foot Locker, Inc. (NYSE:FL) Q4 2022 Earnings Call Transcript

Mary Dillon: Well, I think we’re just growing that balance over time. Nike is clearly a leader and our #1 brand partner and will continue to be so for some period of time. And I think our quest is to say, how can we drive great growth with Nike as well as, as you just said, broaden the portfolio and do that through other brands, and we’re doing that today.

Franklin Bracken: It’s also a different mix by banner. So WSS is a sub-50% Nike penetration. Champs is going to migrate to sub-50%. Foot Locker in kids have a higher proportion of Nike and Jordan, candidly, because that’s what the sneaker may have in the fashion for a month, the old saying, the heart launch with the heart launch. So ultimately, the consumer will sort of decide. But it is different. And again, that goes back to , I think this gentleman’s question is about the use and application of our banner portfolio. It’s very discretely against different consumer segments who want inherently different things.

Unidentified Analyst: , a quick question around GOAT. Can you sort of talk about the financial sort of valuation of the company for your participation and more importantly, about how it plays a role in the strategy?

Mary Dillon: Do you want to that?

Franklin Bracken: Sure. Yes. So very happy and proud of the work that Eddy Lu and the team are doing at GOAT. They’ve obviously carved an incredible position for themselves in the secondary market. A fantastic brand, a fantastic digital experience, made a recent acquisition of the GRAIL company to help grow their streetwear and apparel business. I sit on the Board, so always in active conversations with Eddy and the senior team and their investment partners about how to share data, how to look at operational efficiencies and how to think strategically about the future of the marketplace. So at this point, we’ve tested some things. We’ll continue to have those conversations and look for opportunities to partner and drive synergy, both from a consumer as well as a back of house standpoint and more to come. But certainly, those guys have carved and charted a nice path for themselves in the secondary market.

Unidentified Company Representative: I think that concludes Q&A.

Mary Dillon: Yes. Wow, this is the first. Thank you all again, so much of your time and attention. Really appreciate your questions as well. Thank you.