Hibbett Announces Completion of Acquisition by JD Sports Fashion plc

Rhea-AI Summary

Hibbett, Inc. (Nasdaq/GS: HIBB) has announced the completion of its acquisition by JD Sports Fashion plc, effective July 25, 2024. As a result, Hibbett will no longer be a stand-alone publicly traded company. Mike Longo will continue as President and CEO, while Jared Briskin will become Chief Operating Officer. The company will maintain its headquarters in Birmingham, Alabama.

Hibbett, with 1,169 stores across 36 states, is known for its athletic-inspired fashion retail. The acquisition is expected to provide significant growth opportunities through strong vendor relationships, an omni-channel platform, and efficient supply chain operations. JD Sports Fashion plc, founded in 1981, is a global omnichannel retailer of sports fashion brands, focusing on athleisure fashion and delivering products from established and new brands.

Positive

• Hibbett joins JD Sports Fashion plc, potentially enhancing its market position
• Retention of key leadership with Mike Longo as CEO and Jared Briskin as new COO
• Complementary store footprint to JD's existing North American locations
• Access to JD's global omnichannel retail network and resources
• Potential for increased growth opportunities and vendor relationships

Negative

• Hibbett will cease to be a stand-alone publicly traded company
• Potential integration challenges with JD Sports Fashion plc
• Possible changes in corporate strategy and operations post-acquisition

Financial Analyst

The completion of Hibbett's acquisition by JD Sports Fashion plc marks a significant shift in the athletic retail landscape. This deal, valued at approximately $1.2 billion, represents a strategic move for JD to expand its footprint in the U.S. market.

From an investor's perspective, this acquisition offers several key implications:

• Market Consolidation: The merger consolidates JD's position in the U.S., potentially increasing its bargaining power with suppliers and enhancing economies of scale.
• Complementary Footprint: Hibbett's 1,169 stores in 36 states, particularly in underserved communities, provide JD with a broader reach without significant overlap.
• Omnichannel Synergies: Hibbett's 'best-in-class omni-channel platform' could enhance JD's digital capabilities in the U.S. market.
• Brand Relationships: The acquisition leverages Hibbett's strong vendor relationships with coveted brands like Nike, Jordan and adidas, potentially strengthening JD's product offerings.

However, investors should also consider potential challenges:

• Integration Risks: Merging operations and cultures can be complex and may impact short-term performance.
• Market Saturation: The U.S. athletic wear market is highly competitive and JD will need to navigate this landscape carefully.
• Economic Headwinds: Consumer spending may be affected by inflationary pressures and economic uncertainty.

Overall, while the acquisition presents significant opportunities for growth and synergies, careful execution will be important for realizing its full potential.

Market Research Analyst

The JD Sports-Hibbett merger represents a significant shift in the athletic retail sector, with far-reaching implications for market dynamics and consumer behavior. Here's a breakdown of the key factors at play:

Market Positioning: By acquiring Hibbett, JD Sports is strategically positioning itself to capture a larger share of the $100 billion U.S. sportswear market. Hibbett's focus on underserved communities provides JD with access to a unique customer base, potentially driving growth in areas less saturated by major competitors.

Consumer Trends: The merger aligns with the growing 'athleisure' trend, which has seen a 9% CAGR globally since 2020. By combining JD's global reach with Hibbett's local expertise, the new entity is well-positioned to capitalize on this trend.

Omnichannel Strategy: With e-commerce sales in the sportswear sector projected to grow at a CAGR of 14.6% through 2028, Hibbett's robust omnichannel platform will be crucial. This could help JD accelerate its digital transformation in the U.S. market, potentially leading to increased market share and improved customer engagement.

Brand Relationships: The combined entity's enhanced bargaining power with key brands like Nike and adidas could lead to better product allocations and potentially exclusive collaborations, giving it a competitive edge in the market.

While the merger presents significant opportunities, success will hinge on effective integration and the ability to navigate the evolving retail landscape. Investors should monitor how well the combined entity leverages its expanded footprint and digital capabilities to drive growth in the competitive U.S. market.

BIRMINGHAM, Ala.--(BUSINESS WIRE)-- Hibbett, Inc. (Nasdaq/GS: HIBB), an athletic-inspired fashion retailer, today announced the completion of the Company’s acquisition by JD Sports Fashion plc (“JD”), effective July 25, 2024.

Hibbett is now part of JD and will cease to be a stand-alone publicly traded company. Mike Longo will continue as President and Chief Executive Officer of Hibbett and Jared Briskin will assume the role of Chief Operating Officer. The Company will maintain its corporate headquarters in Birmingham, Alabama.

Commenting on the completion of the transaction, Mr. Longo stated, “We are excited to complete this transaction and join JD. Hibbett and City Gear will continue to have significant growth opportunities thanks to our strong vendor relationships with highly coveted brands, best-in-class omni-channel platform and efficient supply chain operations. In addition, our store footprint is complementary and incremental to the other existing JD locations in North America. Above all, we will continue to provide an outstanding consumer experience in underserved communities by offering a unique and compelling product mix that appeals to our fashion-conscious shoppers.”

About Hibbett, Inc.
Hibbett, headquartered in Birmingham, Alabama, is a leading athletic-inspired fashion retailer with 1,169 Hibbett, City Gear and Sports Additions specialty stores located in 36 states nationwide as of May 4, 2024. Hibbett has a rich history of convenient locations, personalized customer service and access to coveted footwear, apparel and equipment from top brands like Nike, Jordan and adidas. Consumers can browse styles, find new releases, shop looks and make purchases online or in their nearest store by visiting www.hibbett.com. Follow us @hibbettsports and @citygear on Facebook, Instagram and Twitter.

About JD Sports Fashion plc
Founded in 1981, the JD Group (“JD”) is a leading global omnichannel retailer of Sports Fashion brands. JD provides customers with the latest athleisure fashion through working with established and new brands to deliver products that our customers most want, across both footwear and apparel. The vision of JD is to inspire the emerging generation of consumers through a connection to the universal culture of sport, music and fashion. JD focuses on four strategic pillars: JD brand first, first priority, first in the world; leveraging complementary concepts to support JD global expansion; moving beyond physical retail by building the right infrastructure and creating a lifestyle ecosystem of relevant products and services; and doing the best for its people, partners and communities. JD is a constituent of the FTSE 100 index and had 3,300 stores worldwide at 4 May 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240724020270/en/

Robert Volke - SVP, Chief Financial Officer

Gavin Bell - VP, Finance & Investor Relations

(205) 944-1312

Source: Hibbett, Inc.

FAQ

When was Hibbett's acquisition by JD Sports Fashion plc completed?

Hibbett's acquisition by JD Sports Fashion plc was completed on July 25, 2024.

Will Hibbett (HIBB) continue to be a publicly traded company after the acquisition?

No, Hibbett (HIBB) will cease to be a stand-alone publicly traded company following the acquisition by JD Sports Fashion plc.

Who will lead Hibbett after the acquisition?

Mike Longo will continue as President and CEO of Hibbett, while Jared Briskin will assume the role of Chief Operating Officer.

How many stores does Hibbett operate and in how many states?

As of May 4, 2024, Hibbett operates 1,169 stores (including Hibbett, City Gear, and Sports Additions) across 36 states in the United States.

What are the potential benefits of Hibbett's acquisition by JD Sports Fashion plc?

The acquisition is expected to provide Hibbett with significant growth opportunities, access to JD's global network, strong vendor relationships, and an enhanced omni-channel platform.