Proactive’s Post

Should be interesting

JD Sports has just announced its acquisition of Hibbett Sports, subject to regulatory approval. With $4.1B in sales, JD Sports will more than double its retail locations in the US sports retail market. However, the company still has some catching up to do with Dick's Sporting Goods and Foot Locker. The $1.1B acquisition is a bold move, and JD has its work cut out for itself to improve product margins and achieve ROI. It will be interesting to watch how the company navigates product pricing moves and potential supply chain synergies gained. #JDSports #HibbettSports #SportsRetail #Acquisition #BusinessGrowth

JD Sports Fashion has made no secret of its ambition to win in the North American market and has, to-date, undertaken some impressive expansion activity. This includes the acquisitions of mall staples Finish Line and Shoe Palace, as well as via the expansion of its own JD Sports fascia. These initiatives have given the company a very firm toehold in the market. The addition of Hibbett to the JD family will provide a big boost to the US business and gives JD Sports a presence in a lot of markets where it is currently underrepresented. Although Hibbett has a very strong sneaker business, the acquisition will also allow JD to play to its strengths in the sports fashion and athletic wear arenas. While Hibbett has had nowhere near the growth of Dick’s, it has nevertheless been a solid performer over recent years and has carved out a clear point of difference in serving smaller and mid-sized towns — places where competition from other sporting retailers is relatively thin on the ground. With only around a quarter of stores within 10 miles of competitors, Hibbett is a destination for sporting goods in the markets it serves. Nevertheless, competition is heating up as more sales are made online and players like Academy Sports + Outdoors look to expand. In my view, this makes the timing of the acquisition by JD Sports favorable as the group will be able to use its superior buying power to drive up margins. Under JD Sports, there is also more likelihood of investment in Hibbett stores and the proposition. All in all, this gives Hibbett a more defensible future. While JD will immediately benefit from the bigger scale, it will have some work to do in integrating Hibbett if it is to get the full benefit from the acquisition. It will also have a balancing act in modernizing the operation while, at the same time, respecting Hibbett’s place in local communities. None of this represents a major challenge to Dick’s, which remains the preeminent retailer of sporting goods and has a much wider proposition that includes deep expertise in sports equipment. However, it does increase the competitive temperature in the sports and sneaker market. #retail #retailnews #sportinggoods #sports #mergers

Frasers Group has continued its global expansion with the acquisition of leading South African sporting goods company Holdsport Ltd. CEO Michael Murray: “This acquisition is a great step forward for us, not only in expanding our footprint but also in enhancing our ability to meet the rising demand for high-quality sporting goods in a region with such dynamic growth.” #retailnews https://lnkd.in/eT4-5fUA

TFG opens its first JD Sports store at Canal Walk Mall TFG has opened its first JD Sports store in Southern Africa at Canal Walk Mall, in Cape Town. Located in a prime spot within the mall, the new JD store features 780m2 of space and embodies the latest innovations in retail design, combining modern aesthetics with functional enhancements that elevate the customer experience. In an exclusive retail partnership, TFG signed a franchise agreement with the leading fashion sports and lifestyle retailer, JD Sports, in March this year, marking an exciting new addition to TFG’s already market-leading sports and lifestyle brands portfolio. TFG Brands London JD Sports Fashion Click here to read more: https://lnkd.in/d4Xq-89n

British retail giant Frasers Group has acquired South Africa’s Holdsport Group, a leading sporting and outdoor goods retailer, in partnership with Old Mutual Private Equity. Frasers Group aims to integrate Holdsport's established brands and infrastructure while expanding its Sports Direct brand, leveraging South Africa’s dynamic market growth. Michael Murray, Jacci Myburgh, Chumani Kula #Fibre2Fashion #f2f #apparel #textile #fashion #textileindustry #f2fnews Read more here: https://lnkd.in/dkJC-UZg

Frasers Group has bought South African sporting and outdoor retailer Holdsport from Old Mutual Private Equity and Holdsport’s management. #Retail #RetailNews https://lnkd.in/eT4-5fUA

Sports Toto’s big gamble pays off Sports Toto Bhd has been on a winning streak. Over the last 5 days, the number forecast operator rose 5.8% to close at RM1.64 on June 20. In the past year, it gained 18%, touching a high of RM1.68 versus a low of RM1.21. A new short-term uptrend may be underway with follow-through buying lifting prices towards the resistance at RM1.68 and RM1.83 next. Investors like Sports Toto for its dividend yield, which is still relatively high at 5.4%. It used to offer annual dividend yields of 7.1%, which was more than the yield on 10-year Malaysian Government Securities of 3.9%. The last time there was a spike in Sports Toto share price was in May after it reported quarterly results that came in stronger than expected. The counter rose to its highest in 18 months at that time to touch a high of RM1.67. Core net profit for the nine months ended March 31, 2024 (9MFY2024) accounted for more than 80% of the consensus full-year forecast. However, many analysts were doubtful of further upside to Sports Toto's share price, and flagged that earnings growth may ease ahead. Sports Toto’s lottery segment benefited from seasonally stronger sales, but this is likely to normalise in the fourth quarter ending June 30, 2024 (4QFY2024). Sales volume for the car dealership business may also normalise in 4QFY2024, adding that the segment could continue to be affected by high financing costs in the UK. It also had to deal with higher depreciation and operating costs. Shares in Sports Toto have risen amid a strong recovery of the lottery segment, while its luxury car retailing unit HR Owen plc benefited from the number plate change month. This was despite tough economic conditions in the UK. According to analysts, Sports Toto’s lottery business had largely recovered, with the gap between pre- and post-pandemic sales per draw narrowing to about 5%. The company recently reported a net profit of RM68.45 million in 3QFY2024 compared with RM23.22 million a year earlier. Revenue inched up 2.4% to RM1.69 billion from RM1.66 billion, according to a bourse filing. For 9MFY2024, net profit dropped 4.2% to RM152.83 million from RM159.58 million. The company's nine-month top line, however, rose 3.9% to RM4.66 billion from RM4.48 billion previously. Some of these numbers are quite encouraging given tough operating environment. But just like most companies, costs are escalating and those which can weather this trying times will come out stronger.

"📈 JD Sports outperforms ‘volatile market’ with record sales and profit growth 💰 JD Sports has posted record revenues and solid profit growth, driven by its global, multi-brand strategy, outperforming a "challenging and volatile market". 💪 #JDSports #Retail #ProfitGrowth #MarketTrends. For more insights, see 👉 databoutique.com." by Retail Gazette about JD Sports Italia

A Latham #capitalmarkets team led by partners Marc Jaffe, Ian Schuman, Michael Benjamin, and Adam Gelardi advised on the upsized US$938.4 million public offering by Amer Sports, Inc., a global group of iconic #sports and outdoor brands. https://lw.link/fYrLAH