JD Sports upbeat as first half continues strong track record globally

Like its fellow high-performer, JD Sports Fashion delivered its half-year results on Thursday and its became another business detailing rising sales and profits.

In the 26 weeks to the end of July, revenue rose 8.3% to reach £4.784 billion, or 12% on an organic basis, reflecting the impact of non-core UK divestments. On a statutory basis, operating profits rose 20.2% to £400.1 million and profit before tax was up 25.8% at £375.2 million.

Premium Sports Fashion delivered 15% organic growth, or 9% like-for-like (LFL) and it made further market share gains in key regions. Gross margins were “robust at 48% and well above pre-pandemic levels”. 

And it saw a “strong performance from our North America premium Sports Fashion fascias” with organic growth of 15%, LFL growth of 9% and EBIT up 12%.

For the last seven weeks since the half ended, it added that trading across the group “has continued in line with our expectations”. At constant exchange rates, organic sales growth was 10%. It has continued to open new JD stores worldwide and is “on track to meet our full-year store targets”.

And despite the tough backdrop, it expects headline profit before tax and adjusted items for the 53-week period ending 3 February 2024 will be “in line with the current market consensus expectations of £1.04 billion”.

CEO Régis Schultz said: “We have delivered a strong first half to our financial period with organic sales growth1 of 12% and profit on track for the full year. In line with our strategic plan, growth is being driven by our premium Sports Fashion business with an impressive performance in Europe (+27%) and North America (+15%), supported by a strong performance in our more mature UK market (+8%). This performance continued in the important back to school period.

“We have made good progress delivering on our strategic pillars, focusing on expanding the JD brand and we will open more than 200 JD stores worldwide in this financial period. We are going to accelerate JD brand growth in Europe through purchasing the non-controlling interest in both ISRG and MIG, and the acquisition of GAP stores in France. This is alongside the proposed acquisition of Courir in the region, which will, when completed, enhance the Group’s existing portfolio of complementary concepts, bringing into the company its market-leading focus on the female customer. Meanwhile, we are building and investing in talent and infrastructure to support future growth.”