UK based sport and casual clothing retailer JD sport (JD.L) announced a $495M deal to purchase American sportswear brand DTLR Villa yesterday. This comes after acquisitions of US based Shoe Palace and UK based Wellgosh both in the last 3 months. 

With DTLR primarily operating on the East coast and Shoe Palace on the West, JD looks well poised to grow their American business. While prior performance is no guarantee of future results, JD sport stock has consistently increased in value over the past 5 years (with the understandable exception of a drop due to the global pandemic, which it has already rallied from) meaning these acquisitions could be seen as a promising sign for the future. 

They already have a US presence but large acquisitions like these should complement their existing business and provide a platform for accelerated growth. Add to this the rising demand for athleisure wear brought on by the huge increase in people working from home and the future as a whole looks very bright for JD. Prospective investors should be made aware that the possibility of an equity placing to raise funds for further acquisitions has been mentioned, so it may be prudent to hold off until their plans for fundraising have been confirmed.