JD Sports’ New CEO Schultz Announces Growth Plan

LONDON (Reuters) – UK-based JD Sports (JDL) will invest up to $3.7 billion to open 1,750 stores over the next five years, new CEO Regis Schultz said. Stated. When retailer Athletic he plans to become a leisurewear ‘powerhouse’.

Schultz, the former boss of French retailer Monoprix, took over FTSE-100 firm JD in September after a turbulent period leading to the ouster of longtime executive chairman Peter Cowgill in May.

His expansion plans pushed JD’s shares up 8% to 177 pence in midday trading on Thursday, the highest in nearly a year.

With a market capitalization of £8.4 billion, JD is comparable in size to UK retailer Next (NXT.L) and is worth almost three times as much as Marks & Spencer (MKS.L).

JD, which sells Nike, Adidas and other sports fashion primarily to customers under the age of 30, will focus on adding new stores in the United States, France, Italy, Germany and Spain, Schultz said.

He wants JD Sports’ market share in those regions to be above 10%. The group already has its market share in the UK, Ireland and Australia.

According to JD, this represents an annual spending of £500m to £600m, with up to 60% opening 250 to 350 new stores each year in key regions.

Acquisitions will also affect future growth, Schultz said, but JD Sports will remain more disciplined than before. Last year, under previous management, UK regulators ordered the company to sell Footasylum, which it had acquired, at a significant loss.

“Acquisitions are around European doors because we need more doors, and opening doors one by one in Europe takes longer than if we could buy existing doors,” he said. rice field.

The expansion should help JD Sports grow revenues by more than 10% annually over the next five years, with the group on track to achieve double-digit operating margins and generate £1bn of cash annually over the period. I am also aiming for

Schultz dismissed concerns that JD’s business model could be threatened by Nike and Adidas trying to sell more products directly to customers.

“Because we are a lifestyle and a sport, we create something unique for Nike and all brands.

($1 = £0.8142)

Reported by Sarah Young.Editing by James Davey and Susan Fenton

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