JD Sports has been considering venturing into other industries for some time
JD Sports is all set to move into the beauty industry having acquired a stake in Hairburst, an online beauty brand.
Hairburst, which sells vitamins, shampoos and styling products, has 45 staff and 1.5m followers across social media was founded in 2014.
The size of the deal has not yet been confirmed. It has been suggested that JD Sports will assist Hairburst in buying a number of bolt-on acquisitions to grow its collection of beauty brands.
It is a signal of the growth of online brands within the beauty industry.
JD Sports has also signalled its intention to grow beyond the sportswear industry.
It had considered making offers for both Debenhams and Topshop as the high street brands became available earlier this year.
While some shareholders expressed concerns about taking the business away from its area of expertise.
Peter Cowgill, executive chairman, had played down the company’s interest in other companies saying that JD Sports “looked at everything which either extended its geographical reach or sold other products “which are relevant to a style-conscious consumer”.
Cowgill said of the Hairburst stake: “We are pleased to have made this initial acquisition in the beauty sector and have been impressed by the capabilities of the management team, who have a strong identity and connection with millennials and Gen Z consumers.”
The JD Sports share price is down by 1.04% on Monday.