Shares in JD Sports Fashion PLC (LON:JD) closed Friday at 1594p, this morning they opened at 330p as the share dilution that was announced on the 1st of November came into effect splitting the ordinary shares of 1.25p each into shares of 0.25p. In old money, JD Sports shares are trading up almost 4% as the group announced the acquisition of Go Outdoors for £112 million, adding to it’s already significant exposure in the outdoor market through the Blacks, Millets, Tiso and Ultimate Outdoors businesses.
The purchase sees Go Outdoors founders Paul Caplan and John Graham leave the business
Through the purchase JD Sports adds 58 Go Outdoors stores to the group. With the majority of the stores being at out of town retail parks the Chief Exec Peter Cowgill confirmed “The minimal overlap in store locations and their out of town, one stop retailer approach complements the work we have done on the high street with Blacks and Millets and further strengthens our offering in the outdoor sector. I am excited by the future prospects this holds for the JD Group.”
The addition to the group can also be seen as backing the potential boost for the staycation market as the pound weakens making international holidays that bit more expensive. With Go Outdoors reporting sales of £202m last year, this equates to approximately 10% of JD Sports’ expected sales for this year providing what could be a notable boost with little geographical competition through differing store locations.