JD Sports beats ‘unprecedented challenges’ to retain profitability

JD Sports posted pre-tax profit before exceptionals of £421m in the year to January 30, down from £439m the previous year.

The retailer’s sales were just ahead of the previous year’s, at £6.17bn.

JD Sports executive chair Peter Cowgill put the strong performance down to factors including the strength of the JD brand, product relevance and an “agile multichannel ecosystem”.

He also flagged “transformational developments” in the US, where JD and Finish LIne delivered an “exceptional trading performance” helped by a government stimulus package.

JD Sports’ outdoor division, which includes Blacks and Go Outdoors, returned to profitability in the second half.

Cowgill said: “The global Covid-19 pandemic and, more recently, the UK’s formal exit from the European Union have presented a series of unprecedented challenges, which have severely tested all aspects of our business including our multichannel capabilities, the robustness of our operational infrastructure and the resilience of our colleagues. 

“Notwithstanding these well-publicised challenges, a number of positive themes have been increasingly apparent through the year which gives us confidence that, as we begin to emerge from the worst of the disruption, JD is at the pinnacle of the global sports fashion industry.

“We have a market-leading multichannel proposition, which continues to enhance its relevance to consumers and has the necessary agility to progress in an environment where the retailing of international brands may see permanent global structural change.

“Our positive outlook is reflected by the fact that, even with the unique circumstances of store closures for a substantial period of the year, the group has retained substantially all of its record profitability from the prior year.

“Our recent completed acquisitions of Shoe Palace and DTLR in the United States, together with the conditional acquisition of Sizeer in Central and Eastern Europe, are important steps in our evolution which will transform our consumer connection in these markets and further develop our key brand relationships.

“Whilst we must recognise the substantial level of temporary store closures to date and ongoing, we remain confident that we are well placed to benefit from the opportunities that prevail.”

The retailer expects profits in the new financial year to come in between £475m and £500m.