Pentland Group

British textile and footwear company

Pentland Group is a British privately held global company that owns and invests in, primarily, retail and wholesale businesses in the sports, outdoor and sports fashion sectors. The Group is the majority shareholder of JD Sports, which operates 2,420 stores across 19 territories. The Group owns Speedo, Berghaus, Canterbury of New Zealand, Endura, Boxfresh, Ellesse, Red or Dead, SeaVees and Mitre. It is also the UK footwear licensee for Kickers and has a joint venture partnership for Lacoste footwear. The Group also holds interests directly and indirectly, through fund managers, in activities and businesses operating in sectors outside of its core trading activities, to provide the Group with an element of diversification. With annual sales of $6.4 billion, Pentland Group is headquartered in London and the Group employs more than 50,000 people. In 2017, Pentland Group was awarded the International Institute for Management Development (IMD) Global Family Business International Award in recognition of the group's commitment to sustainability, ethical trade, human rights, outstanding contributions to combating modern day slavery as well as its skill in regenerating itself through innovation and entrepreneurial venturing.

The company was founded in 1932, when immigrant couple Berko and Minnie Rubin (from eastern Europe) created the Liverpool Shoe Company. When Berko died in 1969, Stephen took on the role of chairman. The Rubin family had initially listed their company on the London Stock Exchange in 1964, However, according to an article in The Independent, prior to the company returning to a private holding, institutional investors in the City had been unhappy with the way Rubin was running the company, which was underperforming the market by 40% since it floated in 1989.

Pentland Group acquired 45% of JD Sports Fashion plc from its founders, John Wardle and David Makin, in May 2005. Pentland Group is now the majority owner of JD Sports (55%), which has 2,500 retail outlets worldwide, including JD, Scotts, Size, Blacks, GO Outdoors and Millets in the UK. In 2013, the company reported a 45% drop in pre tax profits to 62.9m. However, Pentland Group saw total revenues rise 14.2%, to £1.74bn, a fact Drapers magazine linked to the Olympics fuelling growth from sportswear brands such as Speedo. On the subject, Andy Rubin commented: “There’s no doubt the Olympics helped overall, but in summarizing 2012 I’d say it was really starting to deliver on the investments we have put into global growth over the last 10 years. In 2014, Pentland Group reported a total sales growth of 10% to £1.9bn and reported pre tax earnings of £85m (Year to December 2013). Excluding income from its retail investments, turnover rose 11% to £590m, with Speedo delivering a record performance. In 2015, Pentland Group reported a revenue increase of 14%, to £2.2bn (year to December 2014). Within the Pentland Brands portfolio, Speedo achieved "record sales" for the second year in a row. From 1 January 2015, Andy Rubin was promoted to Chairman at Pentland Brands plc (a division of Pentland Group plc). In February 2016, JD Sports Fashion appointed Andy Rubin to its board as a non executive director. This measure was a precursor to the business increasing its international expansion. In June 2016, Pentland Group announced a 10% increase in sales to £2.4bn (year to December 2015). Rugby inspired label Canterbury Brands had "record breaking sales", boosted by the Rugby World Cup. Operating profits, before tax and exceptional items, was up 36% year on year, to £220m. On 15 March 2017 Pentland Brands Limited, a division of Pentland Group, announced it had bought a majority stake in California based sneaker brand, SeaVees. For the year ended December 2017, Pentland Group recorded total group revenue increase of 25 percent to 3.6 billion pounds (4.7 billion dollars). In January 2018, Pentland Group announced a 50/50 joint venture footwear partnership with the Lacoste Group. In March 2018, Pentland Brands Limited announced its acquisition of the performance cycling brand Endura. and later that year sold its Ted Baker footwear business back to the Ted Baker brand. Fuelled by a record breaking performance from JD Sports Fashion, Pentland Group’s revenue soared 38.9% to £5.1bn for the year to 31 December 2018, with Group operating up by 9.3% to £411m. In 2018, JD Sports Fashion bought US retailer, Finish Line and opened 83 new stores, including 78 in international markets. In December 2019, Pentland Group sold 2.47 percent of its JD Sports' shares for £180m, intended for funding future group acquisitions. With the sale, it remained JD's largest shareholder, controlling 55 percent of the business. At the time, Pentland Group said it was "committed to remaining a long term majority shareholder in JD at the same time as growing its portfolio of sports, outdoor and fashion brands through organic investment and acquisitions". In January 2020, Pentland Group brought the spinoff Speedo USA and Speedo North America back under its Speedo brand by buying it out from PVH for $170 million in cash.