JD Sports plans $1bn deal for retail expansion in US

Hibbett, which has about 1,169 stores across 36 US states, will extend JD's breadth in the country.

JD Sports,expects the Euro soccer championships, Paris Olympics, and new styles of trainers and tracksuits to spark life into the lacklustre market. 

JD Sports has proposed to buy American athletic fashion retailer Hibbett for about $1bn (€934m), as the British-owned sportswear retailer looks to expand across the southeastern US.

The deal comes as shares in athletic clothing retailers come under pressure globally after weak outlooks from sports clothing makers such as Nike and Puma. Last month JD's US rival Foot Locker also warned on 2024 profits, though Adidas last week hiked its 2024 forecast on strong demand for the German sportswear giant's sneakers.

JD Sports, which sells Nike, Adidas, Hoka, and other sports brands, said last month it expects the Euro soccer championships, Paris Olympics, and new styles of trainers and tracksuits would spark life into the lacklustre market. 

JD's acquisition of Hibbett, which has about 1,169 stores across 36 US states, will extend its breadth in the country from "coast to coast", finance chief Dominic Platt said in an analyst call. It already owns Shoe Palace, which has a big presence on the US west coast, and DTLR, which is established in the east.

JD Sports shares, which have fallen more than 20% so far this year, rose 3% by the close of trading in the latest session. The enlarged group would have combined revenues of about £4.7bn (€5.5bn) in North America, JD Sports said, adding that the region's contribution to total sales would increase to about 40% from the current 32%.

The deal is expected to add to the British firm's earnings in the first full year of ownership, with cost savings expected to be at least $25m, JD said.

 Reuters