JD Sports Fashion will acquire American athletic fashion retailer Hibbett Inc (HIBB) in a merger announced on April 23, for $1.1 billion, as Britain’s biggest sportswear retailer looks to expand across the southeastern U.S.
The deal comes after a recent string of weak outlooks by sports apparel makers like Nike and Puma, who warned of weaker sales in the year’s first half. In March’s trading update, even the CEO of JD Sports Fashion, Régis Schultz said that “the current trading environment remains challenging due to less product innovation and elevated promotional activity”.