Sports Direct snaps up stakes in Dick's Sporting Goods and Iconix Brand

Under-fire retailer Sports Direct has revealed two 'strategic' investments in the US as it looks to reduce reliance on its domestic market.

The sports discounter, which last week warned on profits amid widespread criticism about the treatment of its staff, has snapped up an 11.5% stake in Umbro and Lee Copper owner Iconix Brand Group and 2.3% of US retailing giant Dick's Sporting Goods.

Sports Direct said its main rationale for taking these stakes was to allow it to "hopefully build a relationship and develop commercial partnerships" with the US companies.

"They also help the company to build relationships with key suppliers and brands," it added.

New York-based Iconix, which licenses several clothing brands to retailers and manufacturers, underwent significant change last summer when founder, CEO and president Neil Cole stepped down, with the board yet to appoint a permanent replacement CEO. Its market cap is just over $250m.

Capitalised at more than $4bn, Pittsburgh-based Dick's is more akin to the FTSE 100 company, operating 645 sports goods stores around North America.