JD Sports profits drop 64.3% in H1 despite record sales of £5bn
Like-for-like sales in Europe rose by 1.7% and 3.3% in North America during the first half, while trading in the Asia-Pacific region saw negative growth against a year prior
JD Sports has reported that its profit before tax fell by 64.3% to £126m during the 26 weeks to 3 August, despite revenues rising 5.2% to a record £5bn in the period.
The group’s rise in revenues was partially bolstered by £61m from 10 days of trading from Hibbett, following its acquisition which was completed just before the end of the first half, as well as organic sales growth of 6.4%.
Like-for-like sales in Europe rose by 1.7% and 3.3% in North America during the first half, while trading in the Asia-Pacific region saw negative growth against a year prior.
Meanwhile, the sports retailer’s profit before tax and adjusted items rose 2% to £405.6m, or by 3.4% on a constant currency basis and flat when disregarding the Hibbett acquisition.
As of the end of August, JD Sports traded from a total of 4,506 stores – spelling a rise of 1,189 from the start of the year due to store openings, ongoing disposals of “non-core” stores and the acquisition of Hibbett.
According to JD Sports, its acquisition of Hibbett has strengthened its position in the US and is a key milestone in its international development.
JD Sports expects Hibbett to contribute approximately £25m in profit before tax and adjusted items in the full year.
As a result, the group’s trading performance in the first half was in line with expectations, and its overall guidance range remains unchanged.
Régis Schultz, CEO of JD Sports Fashion, said: “Our success is a direct reflection of the strength and agility of our global, multi-brand strategy, which allows us to adapt swiftly to fast-changing industry trends across the world, and our operational excellence. This ensures we continue to deliver an industry-leading customer proposition both in store and online.
“I am very proud of our teams across the globe, whose dedication and hard work have been instrumental in achieving these results. Our strong business model and clear strategy position us to deliver long-term growth and value creation for our shareholders.”
