Experts rule on rumors of brand disinvestment by JD Sports

According to press reports, JD Sports is in talks to sell multiple brands in its fashion and beauty portfolio as it seeks to focus on its core offering.

Speaking to JustStyle, GlobalData’s apparel analyst, Pippa Stephens, said: “J.D. Sports rumored to be offloaded, which includes The Couture Club and Hairburst, currently accounts for only a very small proportion of its total sales, so Cutting ties with them will have little impact on its future performance.

“While the sportswear market is still booming in the aftermath of the pandemic and other parts of the retail market, which is now struggling due to rising inflation rates and waning consumer confidence, this is one of the key aspects of its core proposition for JD Sports. It makes sense to focus on growing, rather than these smaller brands, to make sure it continues to thrive. ,

JD Sports did not return a request for comment.

Last week, JD Sports issued a warning for the second half of the year after reporting a decline in earnings for the 26 weeks ended July 30.

In its first-half results, profit before tax was GBP298.3m (US$337m), down from GBP364.6m a year earlier.

The retailer said business in the UK, mainly online, softened in August and early September. Profit before tax in the UK and the Republic of Ireland was lower by GBP174.2m to GBP153m. The sports fashion retail fascia in Europe made a comeback, contributing to a gain of GBP57.1m from a loss of GBP7.2m a year earlier.

The sportswear retailer had previously been plagued by issues surrounding an attempt to acquire Futasilm, which was blocked by the UK Competition and Markets Authority, which believed the deal could be bad for shoppers as it would result in higher prices. Prices, there may be fewer options or shortages in stores. in quality of service.

In its Phase II findings, it said the merger could result in a “significantly reduced competition” in the retail supply of sport-inspired casual footwear and sport-inspired casual apparel – both in-store and online – to consumers in the UK. , the conclusion that JD Sports said was fundamentally flawed.

JD closed the deal to sell the Footasylum brand to Aurelius in August.

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