Foot Locker to acquire CCS

Via CNN Money:

Foot Locker Inc. (FL) will buy direct-to-consumers business CCS from Delia's Corp. (DLIA) for $102 million as the specialty athletic retailer looks to expand its offerings in the skateboarding apparel category.

CCS sells skateboard footwear, apparel and accessories through catalogs and the Internet. CCS revenue is expected to surpass $80 million in 2009 and Foot Locker said expanding its offerings in the skateboarding area would help broaden its appeal to teenaged males, CCS' target customers.

My take
I remember getting the CCS catalog (back then it was called California Cheap Skates) back in the early/mid 90s, but I never would have guessed it would be a $100 million business with $80 million in annual revenue. Foot Locker shouldn't have any problem managing CCS given their extensive knowledge of footwear, so this seems like a great move. By the standards of, say, P&G, $80 million in annual revenue isn't a huge opportunity, but considering that Zumiez' sales last quarter were $92 million, it is quite sizable given the size of the action sports retail industry as a whole.