JD Sports CEO Régis Schultz and the management team detailed its growth strategy and key objectives for the next five years and how it would enhance its position as a “leading global sports-fashion specialist.”
JD is the parent company of Finish Line, DTLR and Shoe Place in the US and other retail brands in the UK, Europe and Australia, including JD, Millet and Sport Zone.
Schultz told investors and sell-side analysts that he wanted to turn the £8.8 billion company into a “global sports/fashion powerhouse” over the next five years.
“Today marks a new, distinct chapter in the growth story of JD as we set our plans to become the leading global sports/fashion powerhouse,” explained Schultz. “Building on our strong existing position and attractive long-term market dynamics, we see significant growth opportunities ahead by expanding JD internationally, notably in North America and Europe. We will also be enhancing our omnichannel retail offering, investing in technology and analytics and leveraging our long-term strategic brand partnerships to better serve more customers.”
The retailer said it will invest up to £3 billion to open as many as 1,750 stores worldwide and will invest between £500 million to £600 million per year into its operations, the bulk of which will go toward expanding its store footprint in the U.S. and Europe over the next five years.
JD Sports is expected to grow their U.S. presence to over 800 stores over the five-year period, with roughly half of the stores seen coming from store conversions of Finish Line stores into JD-branded stores. The other half will reportedly be new stores, focused on the western U.S.
“Our track record of disciplined investment and strong retail execution means that JD is extremely well-positioned to capitalize on its material headroom for growth globally and continue delivering value for shareholders,” Schultz said.
The management team set out further details on the retailer’s growth strategy and key objectives for the next five years, which include:
- Double-digit revenue growth;
- Double-digit market share in key regions;
- Double-digit operating margin;
- CAPEX of £500 million to £600 million per annum, with 50 percent to 60 percent of spend focused on store expansion in under-penetrated markets with 250-to-350 new JD stores per annum; and
- Cash generation from operating activities of £1 billion per annum.