JD Sports’ profits double versus pre-pandemic record

JD Sports said that headline profit before tax and exceptionals reached £947.2m last year, compared to the previous high of £438.8m set in the year to February 1 2020.

JD Sports, which is looking for a new chief executive following the abrupt departure of Peter Cowgill, said that revenue rose from £6.17bn to £8.56bn in the year ending January 29 when its North American business performed strongly.

JD said it was “reassured” by trading to date in the new financial year, and that total sales in the group’s like-for-like businesses rose 5% year-on-year. However it is “conscious of the headwinds that prevail including the general global macro-economic and geopolitical situation” and said that headline profit before tax and exceptionals is expected to be similar to that in the year just ended.

The retailer has been buffeted by controversies over issues ranging from governance, to allegations of price fixing and its acquisition of Footasylum.

Interim chair Helen Ashton said: “This result demonstrates our capacity for growth in both existing and new markets, and the strength of our global proposition and consumer engagement in store and online. 

“Balancing the operational requirements of running and growing a business through a global pandemic with the obligations of elevating governance standards has been complex, and not without challenge. A number of regulatory issues have arisen through this time which, following a series of independent investigations alongside the completion of the group’s governance review, have highlighted the need for both greater relevant experience on the board and more formalisation in governance systems, risk management recording, the documentation and appraisal of internal controls and the mechanisms for reporting relevant matters to the regulatory authorities where appropriate.

“The process to recruit a CEO is ongoing with a number of high calibre candidates at different stages of consideration including some who have only recently made their interest in the role known. A process to recruit a new non-executive chair is also progressing at pace. Meanwhile, the board is happy with how the interim arrangements are operating and will update the market on the progress of these search processes as appropriate.

“JD is a globally recognised iconic multichannel retailer with a proven strategy, clear momentum and a talented and resilient senior management team who are recognised within the sports fashion industry as some of the leading figures in their fields. The board and senior management team are united in their determination to build on the historical successes with the same laser focus on the consumer, commercial rigour, attention to service excellence and analytical intensity.

“We will continue to seek to inspire the emerging generation of aspirationally minded consumers through a connection to the universal culture of sport, music and fashion with the highest standards of consumer experience and execution, both in stores and online.”

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