JD Sports profits and sales jump as acquisitions power international growth

For the 26 weeks to August 3, JD Sports reported a 2% increase in profit before tax to £405.6m and a 5.2% jump in group sales to over £5bn. 

The retailer also reported a 6.7% surge in operating profit before adjusting terms to £451.1m, with organic sales growth of 6.4% and like-for-like sales growth of 0.7% during the period. 

Schultz said the results show JD Sports’ success “is a direct reflection of the strength and agility of our global, multi-brand strategy, which allows us to adapt swiftly to fast-changing industry trends across the world, and our operational excellence”.

He also hailed the impact on the balance sheet of Hibbett, the American retailer JD Sports acquired earlier this year. Without the impact of Hibbett, JD Sports’ gross margins were down 10 basis points while operating margins were in line with the previous period at 8.8%. 

The completion of the Hibbett acquisition also cemented North America as JD Sports’ largest region by revenue, representing around 40% of the group’s entire pro forma annualised group revenue.

Schultz said: “We have today reported record interim results with goup revenue of £5bn, and profit before tax and adjusting items of £405.6m, underscoring our ability to outperform the sector in a volatile global marketplace. Our success is a direct reflection of the strength and agility of our global, multi-brand strategy, which allows us to adapt swiftly to fast-changing industry trends across the world, and our operational excellence. This ensures we continue to deliver an industry-leading customer proposition both in store and online.

“Organic sales growth in the first half was 6.4% and our underlying operating margins were in line with last year, notwithstanding continued cost investment in our long-term growth. We are reiterating our previous profit before tax and adjusting items guidance range of £955m-1,035m.

“Our acquisition of Hibbett Inc, which completed just before the period end, is a key milestone in our international development and advances the global nature of the group through our strengthened position in the US. I remain confident in the delivery of our exciting growth plans for North America and that the group is well-positioned to continue growing share in the world’s largest sportswear market.

“I am very proud of our teams across the globe, whose dedication and hard work have been instrumental in achieving these results. Our strong business model and clear strategy position us to deliver long-term growth and value creation for our shareholders.”