JD Sports enters capital of sneakers chain Footasylum
The group invested 3.77 million pounds (4.3 million euros) to acquire 8.3% of the British chain. In the medium term, it will reach a participation of up to 29.9%.
JD Sports keeps betting on the sneakers business. The British group invested 3.77 million pounds (4.3 million euros) in the purchase of 8.3% of a store chain dedicated to footwear and sportswear in the United Kingdom. JD stated that it will not submit an offer to take control of the company and that it will limit its participation to 29.9% of the capital.
Footasylum was born in 2015 and has spread throughout the United Kingdom with the opening of more than seventy stores. The company grew by 19% in the first half of its fiscal year, with a revenue of 98.6 million pounds (112.46 million euros). The sales figure of the company for the sports footwear segment was of 53.8 million pounds (61.36 million euros), making is its main driver for growth, just like JD.
The company continues with its international expansion strategy. In Spain, it has 50 stores and in 2017 it announced, together with Sport Zone, the creation of a joint venture to collaboratively manage its business in the Iberian Peninsula. The new sports operator brings together the chains Size?, JD Sports, sprinter and Sport Zone. All together, they totalled a revenue of 500 million euros in 2017 and reached more than 300 stores in the region.
JD Sports is committed to purchasing up to 29.9% of Footasylum, but has not made an offer to take control of the company
JD Sports completed the acquisition of 100% of The Finish Line for 558 million dollars (451.54 million euros) in June 2018. The operation resulted in the consolidation of the company as one of the main distributors in the United States and forecasts an important increase in the revenue. The Finish Line had sales valued in 1.84 million dollars (1.48 billion euros) in the fiscal year closed in February 2018, an amount identical to that from the previous year.
Around the world, JD Sports closed the first half of the year (finished on August 4th) with a growth of 35% in its revenue, to 1.84 billion pounds (2.06 billion euros). The net profit of the group stood at 95.4 million pounds.
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