The Bury based Sports Retailer JD Sports has seen its profits fall on the back of what it called a slower than anticipated market
Reporting its full year results to the 1st February 2025 the retailer reported a twelve per cent increase in revenues but with profits falling from £811m to £715m
Commenting on the results, Régis Schultz, Chief Executive Officer of JD Sports Fashion Plc, said:
“We increased Group revenue on a constant currency basis* by 12% with organic sales growth* of c.6%, more than double the market growth, thanks to our strong and agile, multi-brand model.
We delivered a 48% gross margin, excluding the impact of acquisitions*, which was in line with the previous period due to our full price commercial strategy and strong trading discipline in a promotional market.
We concluded two important acquisitions in our key strategic markets – Hibbett in the US and Courir in Europe – while we continued to invest in our infrastructure and controls environment. In constant currency, our operating profit* was ahead of last year and our operating cashflow was over £1.2bn, demonstrating our strong cash generation. We achieved Profit before tax and adjusting items* of £923m, in line with our January guidance.
“In April, we announced we were adapting our strategy to reflect slower anticipated market growth and an increased focus on profitability, leveraging the investments we have made to support our growth in the key markets of North America and Europe, delivering strong cash generation and improving returns to our shareholders.
“Our focus on increasing shareholder returns is demonstrated by paying FY25 dividends of £52m, up 11% on the previous period, and after the period end, the commencement of a £100m share buyback programme.
“Overall trading in the first quarter of the new financial year has been in line with our expectations in a volatile market. Despite this volatility, and uncertainty surrounding the impact of US tariff changes, we look forward into the medium term with confidence that we can continue to outperform the market, improve our profit margin and create significant value for our shareholders.”
