SPORTS DIRECT INTERNATIONAL PLC

SPORTS DIRECT INTERNATIONAL PLC

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Company Overview
Sports Direct is UK’s leading sports retailer by revenue and operating profit and the owner of several internationally recognized sports and leisure brands. Sports Direct offers a wide range of branded sports and leisure apparel, replica kit, footwear and sports equipment through its retail operations and also operates an international wholesale and licensing business through its brand operations. The company was founded in 1982 and has its registered head office in Mansfield, United Kingdom.
In December of 2006, Sports Direct had granted more than 160 licenses out to third parties, covering a broad range of group brands and product categories. Sports Direct also distributes group brands through its wholesale channels both in the UK and overseas. In addition to the group brands, Sports Direct licenses-in certain brands for sale through its wholesale and retail channels. The licensed-in brands include Arena, Diadora and Umbro. The company also sells third-party brands in its stores, such as Adidas, Nike and Reebok with whom Sports Direct has long-standing relationships, and each of whom has an in-house team at Sports Direct’s head office, campus and distribution center in Shirebrook, Derbyshire, UK.
As of February 2007, the company operated 465 stores, of which 408 are located in the UK (excluding Northern Ireland), 30 in Belgium, 12 in Ireland (through Sports Direct’s 42.5% shareholding in the Heatons chain), 11 in Slovenia and four in The Netherlands. The majority of the company’s stores trade under the Sports World fascia, although Sports Direct moved to a Sports Direct identity. The company also owns a number of stores trading under other fascias – primarily Gilesports, Hargreaves, Lillywhites, Original Shoe Company and Streetwise.
Sports Direct also developed licensed, stand-alone stores outside the UK for certain group brands.
In addition to its retail operations, Sports Direct owns (either outright, through majority ownership or through a joint venture) a portfolio of internationally recognized sports and leisure brands. Its group brands include Antigua, Carlton, Donnay, Dunlop, Kangol, Karrimor, Lillywhites, LA Gear, Lonsdale, No Fear, Slazenger, Title and Voodoo Dolls. The company holds an exclusive license to use the LA Gear brand for sports, leisure and casual wear products in Europe (excluding footwear and socks) with the right to acquire the underlying rights for nominal consideration.
Business Summary
The principal activities of the Company during the year were:
– Retailing of sports and leisure clothing, footwear and equipment;
– Wholesale distribution and sale of sports and leisure clothing, footwear and equipment under Group owned or licensed brands; and
– Licensing of Group brands.
Description and history
The Company is a sports retailer, selling a wide range of competitively priced branded sports and leisure clothing, replica kit, footwear and equipment. In addition to retailing third party brands including Nike, adidas, Reebok and Umbro in its stores, the Company owns a portfolio of internationally recognised sports and leisure brands, including Antigua, Dunlop, Kangol, Karrimor, Lonsdale and Slazenger, and products under those brands are sold in its own stores and through third-party retailers and by licensees.

The principal activities of the Company during the year were:
– Retailing of sports and leisure clothing, footwear and equipment;
– Wholesale distribution and sale of sports and leisure clothing, footwear and equipment under Group owned or licensed brands; and
– Licensing of Group brands.

HISTORY:

The Company was incorporated and registered in England and Wales on 21 December 2006 as a private company limited by shares under the Act with the name Sports Direct International Limited. On 9 February 2007, the Company was re-registered as a public limited company with the name Sports Direct International plc. Its shares are listed on the London Stock Exchange on 2 March 2007.

In March 2006 the Company made a significant investment in the operational, logistics and infrastructure of its business by opening a new head office, campus and distribution centre of approximately 800,000 sq. ft. in Shirebrook, Derbyshire.

In May 2006 the Company acquired the Original Shoe Company Limited, which operated 54 stores.

In October 2006 the Company acquired Kangol Holdings Limited.

In December 2006 the Company acquired Streetwise Sports Company Limited which operated 33 stores.

In March 2007, the Company acquired 100 per cent of the ordinary shares of Sports World International Limited, Brands Holdings Limited, International Brand Management Limited and CDS Holdings SA through a combination of cash, non cash and ordinary share issues.

As at 29 April 2007, the Company operated out of 462 stores, of which 414 were located in the UK (excluding Northern Ireland), 33 in Belgium, 11 in Slovenia and 4 in Holland. In addition, through its 42.5% shareholding in the Heatons chain, Sports Direct had 13 stores, 3 in Northern Ireland and 10 in the Republic of Ireland.

On 7 June 2007 the Company announced that it held a 4.9% stake in Amer Sports Corp.

On 28 June 2007 the Company announced that it had entered into a definitive agreement with Everlast Worldwide Inc (Everlast) to merge a wholly owned subsidiary of Brands Holdings Limited (itself a wholly owned subsidiary of the Company) with Everlast.

On 12 July 2007 the Company announced the acquisition of a 60% interest in Field & Trek (UK) Limited.

On 26 July 2007 the Company announced the acquisition of a 1% stake in Adidas AG.

On 5 February 2008 the Group entered into a strategic alliance with ITAT Group Limited under which merchandise under some of the Group’s portfolio of brands is now being supplied to the larger ITAT stores. ITAT is the largest network of multi brand apparel retail stores in China, operating from over 700 stores in 275 cities.

Business Line
Engaged in the retail of clothing
Subsidiary
ANTIGUA ENTERPRISES INC
Advisor
GRANT THORNTON UK LLP
IPO date
2/27/2007
US SIC Code
5941
Company Address
UNIT A
BROOK PARK EAST ROAD, SHIREBROOK
City province or state postal code
NG20 8RY, MANSFIELD
Phone: +44 870 333 9400
Fax:
Country address: UNITED KINGDOM
Website url: www.sports-direct-international.com