LONDON, Feb 2 (Reuters) – British-based JD Sports (JD.L) will spend as much as 3 billion kilos ($3.7 billion) to open as many as 1,750 shops over the following 5 years, mentioned new CEO Régis Schultz, outlining his plans for the retailer to turn into an athletic leisurewear “powerhouse”.

Schultz, a former boss of French retailer Monoprix, took over at FTSE-100 firm JD in September following a tumultuous interval that culminated within the ousting of long-standing govt chairman Peter Cowgill in May.

His enlargement plan despatched shares in JD up 8% to 177 pence by noon buying and selling on Thursday, their highest stage for a few yr.

With a market capitalisation of 8.4 billion kilos, JD is an analogous dimension to British retailer Next (NXT.L) and value nearly 3 times as a lot as Marks & Spencer (MKS.L).

JD, which sells Nike, Adidas and different sports activities style ranges primarily to prospects beneath 30, will concentrate on including new shops within the United States, France, Italy, Germany and Spain, mentioned Schultz.

He desires JD Sports’ market share in these geographies to develop to greater than 10%. The group already has that market share place in Britain, Ireland and Australia.

That will imply spending between 500 million and 600 million kilos per yr, JD mentioned, with as much as 60% happening opening between 250 and 350 new shops annually throughout its key areas.

Acquisitions may also play a task in future progress, Schultz mentioned, though JD Sports can be extra disciplined than beforehand. Last yr beneath earlier administration, UK regulators ordered the corporate to promote Footasylum, which it had purchased, at a considerable loss.

“Acquisitions will be around doors in Europe because we need more doors, and, in Europe opening doors one by one takes more time than if we are able to buy some existing doors,” he mentioned.

The enlargement ought to assist JD Sports develop income by greater than 10% on common over the following 5 years, with the group additionally aiming to ship a double digit working margin throughout the interval and money technology of 1 billion kilos per yr.

Schultz dismissed considerations that JD’s enterprise mannequin could possibly be threatened by Nike and Adidas seeking to promote extra items on to prospects.

“We create something unique for Nike and all the brands because we are lifestyle, they are sports,” he mentioned.

(This story has been refiled so as to add dropped phrases “on average” in paragraph 10)

Reporting by Sarah Young; modifying by James Davey and Susan Fenton

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