JD Sports expands US presence with sportswear retailer acquisition
Sportswear giant JD Sports is set to expand its presence in the United States after announcing the acquisition of American retailer Hibbett in a £899m deal.
Headquartered in Birmingham, Alabama, Hibbett trades from 1,169 stores across 36 US states under both the Hibbett and City Gear fascias. In the 53 weeks ending 3 February 2024, the retailer generated net sales of over $1.7bn (£1.38bn) and a pre-tax profit of $131.6m (£106.5m).
JD Sports – which operates over 3,300 stores worldwide – said the acquisition represents an important milestone, accelerating its growth plans in North America as the retailer looks to tap into the world’s biggest sportswear market.
The retailer said that its combined revenue – along with Hibbett – would be approximately £4.7bn, increasing North America’s share of group sales from approximately 32% to around 40%.
Régis Schultz, CEO of JD Sports, said: “We are delighted to announce the proposed acquisition of Hibbett. This acquisition is in line with our strategic priorities and is a very important transaction for our strategic and financial development.
“Strategically, it enhances our presence within North America and achieves our objective of strengthening our Complementary Concepts division. Hibbett’s footprint is highly complementary, adding a stronger presence in communities across the southeastern US, where we currently have a limited presence. It will also provide a stronger platform for the rollout of the JD fascia in the US.
“Financially, it accelerates our growth plans within the US and is expected to be earnings accretive from year one and before potential synergies are taken into account. It will also strengthen further our key brand partner relationships in the largest sportswear market in the world. Hibbett has a strong and experienced management team who we look forward to working with on this transaction and beyond as we welcome Hibbett into our family of North American retail fascias.”
Earlier this year, Schultz said the retailer was making “good progress” against its five-year strategic plan, after opening over 200 stores in 2023.