JD Sports half-year profits slide as online sales costs mount
JD Sports has delivered a fall in pre-tax profit at the half-year mark despite a minimal sales decline due to steep costs associated with fulfilling its online orders.
The sports fashion retailer posted a 61% fall in profit before tax and exceptional items of £61.9m in the 26 weeks to August 1, while sales declined 6.5% to £2.5bn.
The retailer hailed strong sales momentum during a period in which many stores across its global portfolio were closed for varying periods due to the coronavirus outbreak, but said “reduction in profitability has arisen as a result of the additional costs associated with this shift in revenues to online channels particularly during period of temporary store closures”.
JD Sports sales across its sports fashion portfolio fell 4.6% during the period to £2.4bn.
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