JD Sports delivers record results as sales and profits soar

For the period covering 26 weeks to July 31 JD Sports reported sales of more than £3.9bn, up from £2.5bn for the same period in 2020.

The fashion giant also reported profit before tax for the period of £365m, compared to £42m reported for the same period the previous year, while EBITDA soared to £746m. 

Gross profits for the period stood at 49%, while operating profit before exceptional items jumped to £472m, up from just £95m in the corresponding period last year. 

The retailer forecast full-year profits to be at least £750m, but held off on paying an interim dividend citing the consequences of any future restrictions on trading due to the coronavirus. 

JD Sports put its hugely impressive first-half results down to strong retention of sales online in the UK and Ireland when stores were closed and strong pent-up demand when they opened. 

In the US, JD Sports praised the performance of its recently acquired DLTR and Shoe Palace businesses, and said it “successfully capitalised” on the second round of government fiscal stimulus spending. 

The retailer opened 21 new JD stores across Western Europe and six new stores in Asia Pacific during the period, and now trades from 66 JD stores in the US. 

The retailer’s Outdoor businesses also returned to profitable trading in the period. 

JD Sports executive chair Peter Cowgill said: “Ultimately, the group is at the pinnacle of the global sports fashion industry with consumers instinctively knowing that our retail propositions focus on their fashion desires and aspirations in both footwear and apparel, with an agile multichannel ecosystem delivering the highest standards of retail execution and consumer experience.

“This is respected by the international brands that regularly call JD out as a premier global strategic partner.

“We remain absolutely confident that our inherent strengths in retail dynamics and operations provide us with a robust platform to make further progress.

“At this time, we are generally encouraged by our performance in the first few weeks of the second half although retail footfall remains comparatively weak in many countries.

“Assuming a prudent but realistic set of assumptions for the peak trading period ahead which take into account the absence of stimulus in the United States for the second half of the year, in addition to current industry-wide supply chain challenges, we presently anticipate delivering a headline profit before tax for the full year of at least £750m.

“The JD brand is increasingly recognised on a global basis and this result bears testimony to the underlying strength of our business.

“I would like to express my sincere thanks and gratitude to everyone in all of our group businesses for their remarkable contribution in delivering these excellent results during such a challenging period.”