tucker6553

Want Lower Gas Prices? OK, Let's Increase Supply

Maybe a better idea is to finally deal with our consumption.

Sears' Nifty Purchase: Footstar Footwear

I agree with you, guess I didn't do a very good job of thinking it through. Thanks for the correction. I still think it remains to be seen whether SHLD can operate the department as well as Footstar was able to.


GL

Sears' Nifty Purchase: Footstar Footwear

In Footstar's 10-K, they report that they pay "license fees to Kmart equal to 14.625% of gross sales of covered products of all licensed footwear departments"

Taking their sales of $637 million, this amounts to about $93 million in fees that SHLD would no longer be collecting. So, it would seem that SHLD now stands to take in the Footstar profit of $53 million and to lose $80 - 90 million in license fees.

Perhaps I am overstating the fees by a little bit if not all the sales are related to Kamrt stores, but I still believe there is little, if any profit to be made by Sears running the footwear business themselves.