JD Sports full-year profits dipped as it was hit with a “challenging market” over the year.
The retailer’s profit before tax and adjusting items fell 7.5% to £917.2m in the year to 3 February, which it said reflected continued investment in its people, stores, systems and supply chain.
Sales were up 2.7% to £10.4bn as like-for-likes edged up 3.8%. Gross margin dipped slightly to 48%, which it said reflected “elevated market promotional activity during peak trading”.
JD Sports flagged in January that its golden quarter that was hit by discounting across the sportswear market in response to “cautious consumer behaviour”.
CEO Régis Schultz said that the first quarter of its financial year was “in line with expectations in a volatile market”, and it is on track to deliver its profit guidance for the full year.
He insisted that JD Sports had “outperformed the market” in terms of sales growth over the last year.
“This strong revenue performance was delivered in a challenging market, particularly through our peak trading period,” Schultz said.
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He added: “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 sportswear retailer opened more than 200 new stores over the period, with plans for over 200 more in its current financial year.
JD Sports noted its new stores had exceeded internal sales expectations by 20% on average, and have a payback of less than its three-year internal target.
Earlier this month, it launched its first store in the Middle East in Bahrain’s Marassi Galleria Mall. The store, launched in partnership with global retailer and distributor GMG, sets the stage for JD’s expansion in the Middle East market.
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