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Sneaker heaven JD Sports is out here making big moves for boys as they look to give Foot Locker Inc. a run for her sportswear money.
According Reuters, JD Sports is looking to beat its competition further as it is on the verge of acquiring Hibbett Inc. for $1.08 billion. The move comes as the sportswear sector is reeling from SNKRS-sized losses, and that includes the likes of Reebok, Puma and Nike. However, JD Sports is looking to expand its empire. After buying the likes of Shoe Palace, Finish Line and DTLR, JD Sports seems to be on a mission to turn the sportswear market down these streets.
Reuters References:
“Being part of a larger global retailer like JD Sports gives Hibbett more resources compared to its US counterparts Foot Locker and Dick's,” said Cristina Fernández, an analyst at Telsey Advisory Group.
JD Sports will pay $87.50 per Hibbett share in cash, representing a premium of around 20% to the US company's last closing price.
Hibbett shares rose nearly 19% to $86.17 in midday US trading.
JD's acquisition of Hibbett, which has about 1,169 stores in 36 US states, will expand its presence in the country from “coast to coast,” Chief Financial Officer Dominic Platt said on an analyst call.
It already owns Shoe Palace, which has a large presence on the US west coast, and DTLR, which is established in the east.
“From a competitive perspective, (the deal) puts upward pressure on Foot Locker as JD Sports becomes a stronger player in the US,” Fernández wrote in a note.
How will Foot Locker react to this power play? We have no idea, but as long as sneakerheads get the trophies they're asking for, we're riding whoever gives us the best chance of making it. I am just saying'.
What do you think of JD Sports buying Hibbett Inc.? Is less competition in this area better for consumers? Let us know in the comments section below.