Foot Locker Buys Minority Stake in Carbon38, Invests $15M
Foot Locker made a strategic investment in Carbon38, a women's luxury active apparel brand. In addition to $15 million Series A funding, Foot Locker has taken a minority stake in Carbon38. Katie Warner Johnson, Carbon38's co-founder and CEO, said, "We are excited to have Foot Locker as an investor as we continue to scale our business and expand our omnichannel strategy, both in the U.S. and internationally." Foot Locker's Executive Vice President and Chief Financial Officer, Lauren B. Peters, is set to join Carbon38's board of directors.
Total Retail's Take: As Foot Locker looks to improve its standing in the competitive sporting goods, apparel and footwear category, the retailer has targeted kids and women as business growth opportunities. This deal with Carbon38 provides Foot Locker with the chance to leverage Johnson and her team's expertise in the fitness and fashion worlds to not only continue the growth of the Carbon38 brand, but also add strength to its own SIX:02 women's fitness apparel brand. The partnership between the two retailers hopefully will be mutually beneficial.