JD Sports hails strong H1, on track to meet FY earnings outlook

UK sportswear giant JD Sports said Thursday it expects to meet its full-year profit target as its customers remain “resilient” against a backdrop of macro-economic challenges.

The company expects to make a profit before tax and adjusted items of 1.04 billion pounds in the 12 months to February 3, 2024, which would represent year-on-year growth of 5 percent.

It comes as the retailer’s pre-tax profit increased to 375.2 million pounds in the six months to July 29, compared to a profit of 298.3 million pounds a year earlier.

However, its profit before tax and adjusted items narrowed to 373.5 million pounds from 383.5 million pounds.

CEO Régis Schultz was upbeat on the half-year performance, hailing the group’s premium Sports Fashion business as a driving force, with revenue in Europe up 27 percent, in North America up 15 percent, and in its “more mature” UK market up 8 percent.

He said the strong performance has continued into the important back to school period.

Sales rise at JD Sports

Overall group revenue for the first half increased 8 percent to 4.78 billion pounds.

Schultz said the company aims to open a further 200 JD stores worldwide in this financial period, in line with its full-year store opening targets.

He added: “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.”

Schultz added that trading in the most recent seven weeks has been in line with expectations, with organic sales up 10 percent at constant exchange rates.

“Looking ahead, our core consumers remain resilient in the face of the ongoing global macroeconomic challenges,” Schultz said.