Market leader in the sporting goods industry in France, Spain, and Italy, with an increasing presence in China. Vertically integrated business model, which underpins value pricing and allows for merchandising flexibility. Successful track record of positive like-for-like growth since 2005. Lower profitability than other integrated specialty retailers. Exposure to discretionary demand for athletic goods. Historically strong credit metrics, with low leverage. Track record of very prudent financial policy. High amount of capital expenditures (capex) to finance international expansion and transformation plan, which constrains free operating cash flow (FOCF). GDP growth in 2018 and 2019 of, respectively, 1.7% and 1.5% in France, 2.6% and 2.0% in Spain, 1.0% and 1.2% in Italy, and 6.3% and 5.9% in China. Apparel sales growth
