JD, a French businessman leading the company, expressed that Hibbett’s footprint is highly complementary to JD’s existing presence in the US market, particularly in the south-eastern region where JD’s presence is limited. This acquisition will not only enhance JD’s presence in communities across the region but also provide a stronger platform for expanding its fascia in the US market.
The move by JD to acquire Hibbett in the US market goes against the trend of American investors seeking deals in the UK stock market. While many recent takeovers this year have seen Americans acquiring British-listed firms such as GXO Logistics’ acquisition of Wincanton and Spirent’s acquisition by Keysight, Hibbett, listed on the New York Stock Exchange, will double JD’s US sportswear store count to 2,100. Over 1,000 stores will come from Hibbett’s collection. This acquisition will also increase JD’s US sales share from 32% to 40%.
The US market is currently the largest and most lucrative market for sportswear globally, valued at $120 billion. In comparison, the UK sportswear market is valued at $10 billion. By acquiring Hibbett, JD aims to significantly boost its market presence and strengthen its position in the highly competitive sportswear industry in the US.
