JD Sports to open up to 350 new stores
JD Sports has outlined ambitious growth plans to open up to 350 stores globally each year.
The sports fashion retailer’s recently-appointed boss, Regis Schultz, said it expects to generate £1billion in cash each year as he outlined the firm’s latest strategy.
Mr Schultz, who took over as CEO last August following the departure of Peter Cowgill, said it would continue to invest in the UK, but that new openings would be focused on North America and continental Europe.
The plan was unveiled as part of the company’s Capital Markets event today, during which Schultz provided information to investors on the strategic approach the group will be taking and how it plans to “enhance its position as the leading global sports-fashion specialist”.
Among its objectives, JD is looking to hit double-digit revenue growth, as well as a double-digit operating margin and market share in key regions.
Additionally, the group is aiming for a capital expenditure of 500 million to 600 million pounds per annum, with 50 to 60 percent of spend set to be focused on store expansion in underpenetrated markets.
As part of this plan, the filing noted the company is aiming to open up to 350 new JD stores per year.
Next to this, JD said it is expecting a cash generation from operating activities of one billion pounds per annum.
Speaking on the strategy, Schultz said in the regulatory filing: “Today marks a new, distinct chapter in the growth story of JD as we set our plans to become the leading global sports-fashion powerhouse.
“Building on our strong existing position and attractive long-term market dynamics, we see significant growth opportunities ahead by expanding JD internationally, notably in North America and Europe. We will also be enhancing our omnichannel retail offering, investing in technology and analytics, and leveraging our long-term strategic brand partnerships, to better serve more customers.
“Our track record of disciplined investment and strong retail execution means that JD is extremely well positioned to capitalise on its material headroom for growth globally and continue delivering value for shareholders.”
The plans come weeks after JD said annual profits will be towards the top end of expectations following strong sales growth over the key festive period.
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