ASOS, the popular online retailer, is growing its activewear collection with the addition of a fitness brand.
As part of its $405 million acquisition of London’s bankrupt Arcadia Group Limited and its subsidiaries, ASOS could begin selling clothing from HIIT as soon as spring. HIIT sells “streetwear-inspired” activewear for women.
It is estimated that HIIT generated a loss of about $550,000 from Aug. 2019 through Aug. 2020. ASOS will not acquire any of the brands’ stores — about 70 brick-and-mortar retail locations will shutter.
The deal comes as various athleisure giants prioritize international consumers.
- Canada-based Lululemon wants to generate $1.4 billion in annual overseas sales and have 50% of total sales come from abroad by 2023.
- Nike generates 60.1% of its revenue outside of North America.
- 69.8% of Adidas’ revenue comes from outside of Europe.
ASOS plans to keep the identities and customer positioning of Arcadia brands like Topshop, Topman, and HIIT intact, but fully integrate them into the ASOS platform. The deal is expected to close on February 4.