JD Sports Fashion delivers sales growth, maintains profit outlook

JD Sports Fashion reported unaudited full year revenue increase of 2.7 percent to 10.4 billion pounds with constant currency sales growth of 2.9 percent.

Organic sales growth was 9 percent comprising 3.8 percent like-for-like sales growth and 5.2 percent sales growth from net new space. Premium sports fashion organic sales growth was 10.9 percent and like-for-like sales growth was 3.8 percent.

The company said in a statement that the first quarter performance is in line with expectations and JD Sports Fashion is maintaining full year profit before tax and adjusting item guidance of 955 million pounds to 1,035 million pounds.

'Q1 in line with expectations in a volatile market...'

Commenting on the results, Régis Schultz, chief executive officer of JD Sports Fashion Plc, said: "We have started the new financial year with Q1 in line with our expectations in a volatile market and we are on track to deliver our profit guidance for the full year. Looking further ahead, we have a strong business model and a clear strategy to deliver long-term growth and value creation for our shareholders."

The company’s gross margin of 48 percent was down slightly on prior year period, profit before tax and adjusting items for the year of 917.2 million pounds, declined 7.5 percent, while profit before tax of 811.2 million pounds was up 66.7 percent, while adjusted basic earnings per share were down 9.1 percent.

The company opened over 200 new JD stores and plans for over 200 new JD stores in FY25. The company added that the new stores are exceeding internal sales expectations by 20 percent on average and delivering payback of less than three-year internal target.

During the year under review, JD announced proposed acquisitions of Courir in Europe and after the period end, of Hibbett, Inc. in North America. The company’s new distribution centre in Heerlen (Netherlands) began operations during the year.