Andrew Rizzo Low revenues and layoffs have cast a gloomy shadow over the sneaker industry in recent months, but they’re popping champagne over at JD Sports. The UK retailer appears set to acquire its US rival Hibbett Sports for $1.08 billion, adding fuel to JD Sports’ stateside expansion goals.
JD Sports shares fell more than 20% this year, but are already on the upswing following news of the big acquisition. Additionally, the retailer anticipates that the Euro soccer championships and Paris Olympics will deliver an influx of new revenue later on this year.
JD Sports hasn’t outline any specific plans for Hibbett Sports’ 1,169 stores yet, but the most likely scenario is that they keep their name and brand reputation to boot, much like Shoe Palace, DTLR, and most recently Finish Line, all of which fall under the JD Sports umbrella. That’s to say that while this move shouldn’t impact the average consumer’s shopping experience, it comes with stark implications for those vested in footwear stocks.
