Analysts Respond to Shifting Trends in Athletic Retail

JD Sports’ $1.1 Billion Acquisition of Hibbett Could Reshape American Athletic Retail Landscape

In a move that could potentially shift the power dynamics in the American athletic retail industry, JD Sports announced its plans to acquire Hibbett in a deal valued at $1.1 billion. Analysts believe that this acquisition could create a formidable force in the market.

According to Williams Trading analyst Sam Poser, the deal is a “good fit” as Hibbett’s core urban fashion athletic customer base aligns well with JD’s DTLR and Shoe Palace banners. Additionally, JD Sports stands to benefit from Hibbett’s strong e-commerce and omnichannel platforms, making it a strategic move for both companies.

Matt Powell, advisor at Spurwink River and senior advisor at BCE Consulting, also sees the potential of this acquisition, stating that the combined businesses will be much more powerful together than they were as separate entities. This could spell trouble for competitors like Foot Locker, as JD Sports will likely have increased leverage with vendors and continue to take market share.

With Hibbett’s 1,169 stores across 36 states, JD Sports will significantly expand its presence in the U.S. market. Despite this growth, JD Sports CEO Régis Schultz emphasized that there are no plans to rebrand the Hibbett stores, recognizing the value of maintaining the existing community-focused brand.

The transaction is expected to close in the second half of 2024, at which point Hibbett will no longer be a publicly traded company. Hibbett’s current president and CEO, Mike Longo, expressed optimism about the acquisition, highlighting the strength of the brands and the commitment to serving communities and customers.

Overall, the acquisition of Hibbett by JD Sports has the potential to reshape the American athletic retail landscape and create a new powerhouse in the industry.