JD Sports posts surge in full year profits
JD Sports has reported that its pre-tax profit before exceptional items jumped by 56% to £244.8 million in the year to 28 January.
Pre-tax profit was up 81% to £238.4 million as revenue rose by 31% to reach £2.38 billion.
The company attributed much of its success to the performance of its sports fashion fascias where operating profits, excluding exceptional items, rose by 50% to £245 million. Like-for-like store sales across all group fascias, including Europe, increased by 10%.
During the year, JD Sports grew its number of stores in Europe by 54 while opening a further two stores in Malaysia and an additional store in the country in the new financial year. The first JD Sports store in Australia is due to open shortly.
Peter Cowgill, JD Sports executive chairman, said: “The foundation of this success remains our core sports fashion fascias where JD’s continued strength in its core markets is increasingly being complemented by momentum in our international development, with a net increase of 54 JD stores across mainland Europe during the year.
“It is a great testament to the strength and quality of the people at every level in our businesses that we have been able to consistently deliver outstanding results over a number of years.”
JD Sports said its outdoor fascias, including Blacks and Millets, had made “encouraging” progress in the year with an overall segment operating profit before exceptional items of £1.2 million. The company said the fascias had benefited from actions taken to simplify the operational leadership, improve the camping offer and reduce the level of markdowns.
Go Outdoors, which JD Sports acquired last November, did not have a material impact on the current year results.
Looking ahead, Cowgill said: “Although the UK’s vote to leave the European Union means that there will be some uncertainties for the immediately foreseeable future, our international expansion will remain a clear strategic focus. There is an ongoing process to strengthen and build the management team and other core operational infrastructure to support an expansion over a wider geography.”
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