India's Metro Brands hits record high on Foot Locker deal (updated)

Fsn E-Commerce Ventures

30/11/2023 05:54

(Adds details, analyst comment)
       BENGALURU, Nov 30 (Reuters) - India's Metro Brands
 METB.NS  rose as much as 8.5% on Thursday to a record high, a
day after the footwear retailer inked a deal with U.S.-based
chain Foot Locker  FL.N , which plans enter the Asian market in
2024.
    Metro Brands, which has over 700 stores across the country,
will own and operate Foot Locker stores, selling shoes from
brands such as Nike  NKE.N  and Adidas  ADSGn.DE . 
    About 809,000 Metro shares changed hands in morning trade, 6
times 30-day average of 136,000 shares, seeing most active
session since Oct. 3.
    "This is a favorable partnership agreement for Metro and is
a value additive," Nuvama analysts said in a note.
     The analysts said the new format stores for Metro can scale
up to at least 200 stores, raising its target price for Metro
Brands to 1,304 rupees from 1,142 rupees.
    Meanwhile, FSN E-Commerce Ventures  FSNE.NS , parent of
Nykaa gained 0.4%. FSN's Nykaa Fashion will serve as the
exclusive e-commerce partner for the Metro-Foot Locker
partnership.
    Metro Brands shares, which are up over 56% so far this year,
were last up 4%.

 (Reporting by Ashna Teresa Britto; Editing by Mrigank Dhaniwala
and Nivedita Bhattacharjee)
 ((AshnaTeresa.Britto@thomsonreuters.com;))