JD Sports has launched a range of cost-cutting measures and delayed the publication of its preliminary results amid the coronavirus pandemic.
The sports fashion retailer’s chief executive Peter Cowgill has taken a voluntary 75% pay cut as a cost-saving measure, while the retailer’s board and senior management team have all voluntarily reduced their salaries by a quarter on a temporary basis.
JD Sports has also said it “does not believe that it will be appropriate to pay a final dividend this year” and has said it believes “it is in the best interests of shareholders if the group maintains its cash reserves” while the pandemic continues to disrupt day-to-day business operations.
JD Sports has also deferred bonus payments, which it said “will be paid at some point after our stores have reopened” dependent on “actual post-reopening performance and the projected cash flows of the group”.
The company will also be postponing the release of its results for the year to February 1 until July 7, at which time the business will also provide “an update on some of the measures it is taking to actively preserve capital across all aspects of its business and thereby limit the level of cash burn”.
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