JD Sports reports record sales as trainers propel growth
2 October 2024, 08:54
The group reported total revenues of £5 billion in the 26 weeks to August, which it said was a record amount.
JD Sports has said it is doing better than other struggling sportswear labels after reporting rising sales this year, as the group continues to cash in on demand for trainers around the world.
The group reported total revenues of £5 billion in the 26 weeks to August, which it said was a record amount.
This was 6.8% higher than the same period last year, at constant currency rates.
Compared like-for-like, which strips out the impact of new stores that opened this year, sales edged up by 0.7%.
JD said footwear was continuing to drive growth thanks to sustained demand for trainers around the world.
The retailer makes about 45% to 50% of all its sales from Nike, and chief executive Regis Schultz said he had met with the newly-appointed boss Elliott Hill as the US brand grapples with falling sales.
Clothing and apparel was held back by poor weather, particularly in the UK and Europe, where the spring and summer season was rainier than usual, the retailer said.
In the UK, revenues fell by nearly 5% to £1.2 billion, which it said was driven by it getting rid of “non-strategic” brands over the past year, and it putting through more discounts to offload summer stock.
The company reported a profit before tax and adjusting items of £405.6 million for the first half, about 3.4% more than the prior year at constant currency.
JD said its adjusting items, which are what it deems to be one-off costs, include spending related to its acquisition of US rival sportswear brand Hibbett earlier this year, and costs related to the closure of a warehouse in Derby.
Not accounting for that, its pre-tax profit tumbled by nearly two thirds to £126.3 million.
Mr Schultz said the half-year results show “our ability to outperform the sector in a volatile global marketplace”.
He added that JD’s “multi-brand” model puts it in a better position to weather volatility, which he said reflected global economic and political pressures which affect consumer behaviour.
JD opened more than 100 new shops this year and is on track to open 200 by the end of 2024.
In August, it had some 4,500 stores worldwide, including about 1,180 added from the acquisition of Hibbett.
