JD Sports Fashion saw its shares rise by mid-single digits after releasing its latest financials, which showed a 3.6% increase in revenues to £10.5 billion over the last 12 months. The company also reported a 4.2% year-on-year growth in like-for-like sales. Pre-tax profit before adjusted items is expected to be between £915 million and £935 million.
Despite tough market conditions in the final three months of the year, JD Sports managed to see a slight increase in like-for-like sales, with Chief Executive Régis Schultz attributing the performance to the company’s strength and strategic progress. However, higher promotional activity last year led to a decrease in gross margins to 47.3%.
Sales growth varied significantly across different regions, with Asia Pacific experiencing the strongest growth at 8.1% on a like-for-like basis. North America also saw a 4.1% increase in revenues, while Mainland Europe’s turnover grew by 7.7%. The UK and Ireland, however, only saw a marginal 0.8% increase.
Schultz highlighted that the current trading environment remains challenging due to less product innovation and elevated promotional activity, particularly online. Despite this, he expressed optimism that conditions will improve as the year progresses, especially with a busy sporting summer ahead. JD Sports is targeting a profit before tax of between £900 million and £980 million for the full year.
Analyst Russell Pointon of Edison Group praised JD Sports’ performance, noting that the company has shown resilience in the face of ongoing challenges in the retail sector. After a profit warning in January, JD Sports is now trading in line with more reserved predictions. The company’s focus on strategic progress and opening new stores has contributed to its overall growth.
