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| Type | Public (LSE: SPD) |
|---|---|
| Founded | 1982 |
| Headquarters | Shirebrook, Derbyshire, England |
| Key people | Simon Bentley (Chairman of the board) Mike Ashley (Founder and Deputy Executive Chairman) Dave Forsey (CEO) |
| Industry | Retailing |
| Products | Sporting goods |
| Revenue | £1,259.5 million (yr - Apr 08)[1] |
| Operating income | ▲ £109.6 million (yr - Apr 08)[1] |
| Profit | ▲ £77.7 million (yr - Apr 08)[1] |
| Employees | 11,000 (yr - Apr 08)[1] |
| Subsidiaries | SportsDirect.com |
| Website | www.sports-direct-international.com |
Sports Direct International plc (LSE: SPD) is a British retailing group. Founded in 1982 by former county squash coach Mike Ashley, the company is now the UK's largest sporting retailer[2] through a number of retail subsidiaries and sports equipment brands. Although now a publicly traded company on the London Stock Exchange, Ashley continues to hold around 72% of Sports Direct as of April 2008.[3] The company is also a constituent of the FTSE 250 Index.
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History
Early history
The company was founded by Mike Ashley in 1982 as a single store in Maidenhead trading under the name of Mike Ashley Sports.[4] During the 1980's Mike Ashley began opening Sport and Ski shops in and around London: by 1990, there were three registered and recorded outlets. The chain expanded quickly funded by private money and profit from the stores, and by the late 1990s Ashley had rebranded the chain Sports Soccer and opened over 100 stores across the United Kingdom. However, as a sole trader and not having to file accounts at Companies House, little was known about him even by rival retailers. Although sole-trader status preserved his privacy, Ashley was missing out on the limited-liability advantage offered by company status, and in 1999 incorporated the business[5].
Dunlop acquisition
In February 2004 the company acquired Dunlop Slazenger for £40M, which included the Dunlop, Slazenger and Carlton brands.[6] This was closely followed by the acquisitions of outdoor gear manufacturer Karrimor, Kangol for a reported £10M[7], boxing brand Lonsdale and tennis brand Donnay. Most of these brands were bought from distressed sellers. After looking at a takeover,[8] Sports Direct took a £9 million stake and signed a lucrative long-term deal in August 2005 with troubled brand Umbro,[9] which has subsequently been acquired by Nike.
The brands themselves are an increasingly important part of the business, and Sports Direct made £10m from selling the intellectual-property rights to the Slazenger Golf brand to archrival JJB in 2005.[5]
In May 2006 it was also revealed that Ashley had held talks with John Hargreaves, founder of Matalan on both taking a 25% stake in the trouble retail business and installing mezzanine floors in larger Matalan stores, on which SportsDirect.com outlets could be operated.[10].
In December 2006 it was revealed that Sports Direct has built a 29.4% stake in Blacks Leisure Group, the owner of Millets and Mambo.[11]
Going public
In late November 2006, a number of business newspapers reported that Ashley was looking at an IPO of Sports World International. He hired Merrill Lynch[12], who valued the group at up to £2.5bn ahead of a possible flotation on the London Stock Exchange[13]. The group debuted on the LSE on 27 February 2007.[14]
Recent history
In July 2008 it was disclosed that Sports Direct also held a 12.3% holding in the John David Group, parent of JD Sports.[1] Sports Direct has also held 5% of Amer Sports, the world's largest sporting goods manufacturer, since January 2008.[15] "He [Ashley] likes to park his tanks on peoples' lawns," said a banker. [13]
Operations
The group has over 470 UK stores including the chains SportsDirect.com (Sports World prior to 2008), Lillywhites (acquired in 2002) and Field & Trek. The group employs around 11,000 people in the UK and at stores in Ireland, the Netherlands, Belgium, Luxembourg and Slovenia. Sports Direct-branded stores exist under a franchising agreement in South Africa and the Middle East.[1] In 2006 it overtook JJB Sports as the UK's largest sportswear retailer[16].
Brands
Retail
Current brands
- CyclesDirect.com
- Field & Trek
- Goldigga - acquired by Sports Direct in 2008.[17]
- Lillywhites
- SheRunsHeRuns
- SportsDirect.com - internet and high street retail.
Previous brands
- Bike Clearance
- Gilesports - merged into SportsDirect.com
- Hargreaves Sports - merged into SportsDirect.com
- Original Shoe Company - sold to JJB Sports in December 2007.[18]
- Streetwise Sports - merged into SportsDirect.com
- Sports Soccer - merged into SportsDirect.com
- Sports World - merged into SportsDirect.com
Clothing and equipment
- Antigua
- Carlton
- Dunlop
- Donnay
- GoldDigga
- Everlast
- Kangol
- Karrimor
- Lonsdale
- No Fear (outside North America)
- Slazenger
- Voodoo Dolls
See also
References
- ^ a b c d e f "Annual Report 2008". Sports Direct International. http://www.sports-direct-international.com/library/AnnualReport2008.pdf. Retrieved 2008-08-27.
- ^ Finch, Julia (28 February 2007). "Flotation makes Sports Direct founder a billionaire". The Guardian. http://business.guardian.co.uk/story/0,,2022857,00.html. Retrieved 2007-11-07.
- ^ "Holding in company". Sports Direct International. 1 April 2008. http://www.sports-direct-international.com/library/1.04.08%20-%20%20M%20Ashley%20shareholding.pdf. Retrieved 2008-08-27.
- ^ Sports Direct: Overview
- ^ a b Revealed: UK’s first sports kit billionaire - Times Online
- ^ "Game, set and match for Dunlop Slazenger". The Daily Telegraph. February 5, 2004. http://www.telegraph.co.uk/finance/2876059/Game%2C-set-and-match-for-Dunlop-Slazenger.html. Retrieved 2008-09-23.
- ^ "Kangol sold to sports empire". MPDClick. November 17, 2006. http://www.mpdclick.com/mudpie/action/viewListItem?id=7228&listId=19. Retrieved 2008-09-23.
- ^ Sports World tycoon mulls bid for Umbro - Business News, Business - Independent.co.uk
- ^ "Sports World tycoon mulls bid for Umbro". The Independent. http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article544722.ece. Retrieved 2007-11-07.
- ^ Billionaire sports tycoon plots move into Matalan - Times Online
- ^ Ashley empire may be worth £2.5bn - Times Online
- ^ UK Retail News
- ^ a b Sports tycoon eyes £2.5bn IPO
- ^ "Sports Direct: timeline". Guardian Unlimited. 24 July 2007. http://business.guardian.co.uk/story/0,,2133708,00.html. Retrieved 2007-11-07.
- ^ Robinson, Gwen (24 January 2008). "Sports Direct’s Ashley rebuilds Amer stake". Financial Times. http://ftalphaville.ft.com/blog/2008/01/24/10414/sports-direct%E2%80%99s-ashley-rebuilds-amer-stake/. Retrieved 2008-08-27.
- ^ "Sports World International sales climb 45pc and knock JJB off top spot". The Daily Telegraph. April 6, 2006. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/04/06/cnswi06.xml. Retrieved 2008-09-23.
- ^ Ashley adds Golddigga to his empire
- ^ "JJB Sports buys Original Shoe Company from Sports Direct for 5 mln stg". AFX News (Hemscott). 18 December 2007. http://www.hemscott.com/news/static/tfn/item.do?newsId=56416543337313. Retrieved 2008-08-27.
External links
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