BENGALURU (Reuters) – India’s Metro Brands 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, 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 and Adidas.
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, 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)
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