INDIANAPOLIS (AP) — Macy's and Finish Line are teaming up to put Finish Line athletic footwear shops in more than 450 Macy's stores in the U.S. Financial terms were not disclosed.
Finish Line will be Macy's exclusive partner for men's, women's and kids athletic footwear and Macy's will be the exclusive host for Finish Line-branded in-store shops.
Finish Line Chairman and CEO Glenn Lyon said in a statement on Friday that the deal with Macy's will give it access to a customer base that it has yet to tap and will help to expand its reach.
The companies said Friday that the leased departments that will be run by Finish Line Inc. will start to appear in Macy's Inc. stores during the spring of 2013, with the full rollout likely complete by the fall of 2014. Macy's says that its approximately 225 stores that carry footwear will have their athletic footwear and inventory managed by Finish Line starting in 2013's spring.
Athletic footwear chosen by Finish Line will also begin appearing on Macy's website starting in the spring of 2013, subject to the signing of a final online agreement.
The deal is expected to give Finish Line an additional $250 million to $350 million in sales annually.
Macy's has corporate offices in New York and Cincinnati. It runs about 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico, under Macy's and Bloomingdale's. It also has 10 Bloomingdale's outlet stores.
Finish Line, based in Indianapolis, has 638 stores in the U.S. The company also reported Friday that its second-quarter net income and revenue climbed, beating Wall Street's expectations. It also raised the high end of its fiscal 2013 earnings forecast.
Finish Line stock added $2, or 8.8 percent, to $24.75 in premarket trading. That would take it near its 52-week high of $26.16 in in late March.