JD Sports today announced it had bought US athletic footwear retailer DTLR Villa.
The multichannel retailer sells online and from 247 shops in 19 states in the north and east of the US. JD Sports says the $495m acquisition of hyperlocal DLTR, which also sells streetwear, will complement its recent West Coast acquisition of 167-store Shoe Palace. Together the deals bolster JD Sports presence in the US market.
Peter Cowgill, executive chairman of JD Sports Fashion, says: “This is another exciting milestone in the group’s development in the United States. Like Shoe Palace, DTLR pride themselves on the deep connection they have with their consumers and the active role they play in the communities that they serve. As such, we intend to retain the DTLR Villa fascia and its proposition.
“The acquisition of DTLR will enhance our presence in the north and east of the United States and will be another important step in the Group’s evolution.
“We look forward to closing the transaction and welcoming the DTLR team to the group.”
In the 52 weeks to February 1 2020, DTLR reported earnings before interest, tax and asset write downs of $45.6 million. After recognising a charge for depreciation and amortisation of $24.7 million and net funding costs of $19.3 million, DTLR delivered a profit before tax of $1.6 million. The gross assets in the DTLR balance sheet at 1 February 2020 were $293.7 million.
JD Sports is a Leading retailer in RXUK Top500 research. In a recent trading update, parent company JD Sports Fashion raised its full-year profit expectations after seeing shoppers switch readily to buy online during Covid-19 closures. Sales in the 22 weeks to January 22 were more than 5% ahead fo the same time last year – before the pandemic emerged.