JD Sports hails strong full year performance despite drop in profits
JD Sports has said it achieved a strong full year performance in a “very challenging” market despite a drop in profits.
In the 52 weeks to 27 January, revenue increased by 2.7% to £10.4 billion, although growth was impacted negatively by disposals made in the period.
Meanwhile, pre-tax profit before adjusting items fell by 8% to £912.4 million, which the retailer said reflected investment in its people, stores, systems and supply chain.
During the year, JD Sports added over 200 new JD stores to its portfolio and is planning to do the same in its new financial year. The retailer said it sees significant ‘white space’ for the JD brand to grow in Europe, Asia Pacific and North America where it currently has a total of 1,269 stores across all fascias.
Régis Schultz, chief executive officer of JD Sports Fashion, said: “This strong revenue performance was delivered in a challenging market, particularly through our peak trading period.
“We made important strategic progress: putting the JD Brand First through opening over 200 new JD stores; strengthening our Complementary Concepts through the proposed acquisitions of Courir and, announced after the period end, Hibbett; simplifying the group by taking full control of ISRG and MIG and divesting non-strategic businesses; building the right governance and organisation for a global group of our size; and investing in our people and infrastructure to deliver our growth strategy.
Giving an update on its performance in the 13 weeks to 4 May, JD said trading was in line with expectations, with like-for-like sales down 0.7% against a strong comparative in the first quarter of last year.
Schultz said: “We have started the new financial year with Q1 in line with our expectations in a volatile market and we are on track to deliver our profit guidance for the full year. Looking further ahead, we have a strong business model and a clear strategy to deliver long-term growth and value creation for our shareholders.”
