Despite revenue growth, JD Sports faced a challenging financial year with a notable drop in profit.
- A modest 2.7% increase in revenue to £10.4 billion was overshadowed by an 8.1% fall in operating profits.
- The company’s strategic focus includes expansion, with over 200 stores opened last year.
- Footwear sales showed growth, while clothing sales suffered due to unfavourable weather conditions.
- CEO Régis Schultz reaffirms a strategic vision for long-term growth despite market volatility.
In the fiscal year up to 27 January 2024, JD Sports reported a 2.7% rise in revenue, reaching £10.4 billion, amidst a challenging market climate. However, operating profit before adjusting items declined by 8.1% to £973.9 million, attributed to escalating wages and investment expenses.
While geographically, UK revenue faced an 8.3% downturn to £3.5 billion, other regions performed better. Europe saw a revenue increase of 16.3%, achieving £3.1 billion, and North America followed with an 8.4% rise to £3.4 billion. Asia Pacific also recorded growth, with a 7.5% increase, totalling £524.8 million. These figures indicate a mixed performance across different regions.
Retail stores grew by 8.9% in revenue to £8 billion, highlighting a shift back to in-person shopping. However, online sales declined by 7.6% to £2.3 billion, aligning with broader trends away from pandemic-era online habits.
JD Sports’ strategic initiatives were marked by the opening of over 200 new stores under its ‘JD brand first’ approach, with plans for 200 more in the following fiscal year. The company also made significant investments in acquiring Courir and Hibbett, strengthening its portfolio, and simplifying operations by taking control of ISRG and MIG while divesting non-core businesses.
In terms of product categories, footwear sales increased by 8.2% to £5.9 billion, showcasing consumer demand. Conversely, clothing sales dropped by 4.3% to £3.4 billion, influenced by warmer autumn and winter weather. Accessories and other revenues, encompassing various services, also experienced growth.
CEO Régis Schultz remarked on the strategic achievements, stating, “We have started the new financial year with Q1 in line with our expectations in a volatile market.” This statement underscores the company’s efforts and expected continuation of its growth trajectory.
JD Sports remains focused on delivering shareholder value through strategic growth amidst market challenges.
