Blog: Sports retailers race ahead
Leonie Barrie | 14 December 2009
Shareholders in two of the UK’s biggest sports retailers were buoyed last week after Sports Direct posted a 39% hike in first-half pre-tax profit and rival JJB Sports named its new chief executive after nearly a year of searching.
The hiring of electronics executive Keith Jones, group retail director of DSG International, is a major relief for JJB Sports, which was dragged back from the brink of administration earlier this year. It also follows the unsettling exit of its previous boss, who was suspended after an investigation into the disposal of his stake in the company.
However, it will be no bed of roses for the new man. The firm’s executive chairman Sir David Jones has been embroiled in controversy over a personal loan, and in September the retailer saw its half-year losses widen to GBP46.0m (US$74.4m).
Sports Direct, meanwhile, raised its full-year earnings guidance on the back of its results, which included a 10.1% jump in revenue. The retailer said it intends to continue its international expansion after global sales rose 22.8%. But it is also setting its sights on South Africa and next summer's World Cup – and the expected upturn in business that comes with every major football tournament.
Inditex, Europe’s biggest clothing retailer and owner of the Zara fashion brand, has also been buoyed by international growth – particularly its aggressive expansion in Asia. While its profit for the first nine months of the year fell 1% to EUR831m, sales rose 6% to EUR7.76bn (US$11.44bn), with rapid growth in China, Japan and South Korea helping to offset a slowdown in Spain.
Japanese retailer Aeon, meanwhile, has ditched its 54% stake in US women’s wear retailer Talbots as part of a deal that will also see the repayment of $491m in debts to Aeon. Under the plans, Talbots will merge with special purpose acquisitions company BPW, and has also agreed a $200m credit line with GE Capital. This should leave it with around $160m of debt.
The deal was announced as Talbots posted a third quarter profit of US$17.2m thanks to tight control of costs and expenses. But sales slipped 13.5% to $308.9m.
T-shirt and underwear maker Hanesbrands has also refinanced its debt to give it more flexibility to focus on growing its business and now says it is looking out for possible acquisitions. The company, whose brands include Playtex, Champion, Wonderbra and Hanes, said its new debt terms allow it to target takeovers in the $200m to $300m range – and that any potential acquisitions would be in core apparel essentials categories.
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...
Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....
Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...
- Trump and the apparel industry – Infographic
- How US border adjustment tax could affect apparel
- British Brexit plans prioritise tariff-free trade
- $1.7bn package to boost Pakistan clothing exports
- Apparel factory auditing is in the firing line
- Cambodia clothing exports at risk from Brexit
- Apparel brands urge Bangladesh PM to address wages
- New project to digitalise European fashion chains
- Brands need to tackle Turkey factory refugee abuse
- JC Penney to roll out hundreds of Nike "shops"
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Anti-odour clothing: fresh fashion for an active lifestyle
- Global market review of lingerie – forecasts to 2022
- Global apparel markets: product developments and innovations, October 2016