Showcasing the success of its multi-brand strategy, JD Sports Fashion outperformed analysts’ expectations for its first-half profit. In the 26 weeks leading to Aug 3, 2024, the British sportswear retailer posted an adjusted pre-tax profit of £405.6 million, surpassing the £384 million forecast by analysts. Regis Schultz, CEO attributed this success to the company's global, multi-brand approach, which allowed it to quickly adapt to shifting industry trends.
The group achieved organic sales growth of 6.4 per cent, with like-for-like sales growth at 0.7 per cent. Revenues rose by 5.2 per cent to £5 billion, with a 6.8 per cent increase in constant currency. However, despite the adjusted profit rise of 2 per cent, statutory reported profit before tax declined by 64.3 per cent to £126.3 million.
JD Sports saw notable success across its core segments including JD, Complementary Concepts, and Sporting Goods & Outdoor. The JD brand experienced double-digit organic growth in Europe, North America, and Asia Pacific, opening 83 new stores, including its largest ever location in Stratford, London. The company is set to open 200 stores globally by year-end and transferred 19 more stores to JD from Finish Line, MIG, and ISRG.
The acquisition of Hibbett expanded JD’s North American presence with 1,179 stores, although the completion of its Courir acquisition awaits European Commission approval. Progress in omnichannel efforts was highlighted by the rollout of 'ship from store' in Europe and a successful 'click and collect' trial in France.
Regionally, Europe and North America showed strong organic sales growth of 10.1 per cent and 10.7 per cent respectively. The company’s performance in the UK improved as the period progressed, though non-core divestments impacted overall results. This growth was mainly driven by the footwear category, with a growth of 9.6 per cent and a larger share of 59.8 per cent in revenue. Meanwhile, the apparel category struggled due to weather-related challenges, growing only 0.7 per cent, with its share of revenue dropping to 29.8 per cent.
