JD Sports anticipates a major revenue shift towards the US market by 2025.
- CEO Régis Schultz aims for 45% of turnover from US operations.
- The UK and Europe will contribute 20% and 30%, respectively.
- New store openings in the US and potential expansion into South America are planned.
- Recent financials show notable growth in North America and Europe.
JD Sports CEO Régis Schultz has shared projections indicating that nearly half of the company’s turnover could originate from the US market by the end of 2025. This strategic focus underscores the importance of expanding the brand’s presence stateside as part of its broader growth strategy.
Presently, JD Sports expects that the United Kingdom will account for 20% of its total turnover, while Europe is projected to make up 30%. This distribution highlights the maturity of the UK market for JD Sports, while Europe shows signs of growing market share.
The CEO has revealed plans for further retail expansion in the US, which is seen as a key growth area. There is also contemplation of possibly entering the South American market in the future, marking a bold step in the company’s international ambitions.
The company’s recent half-year trading update was positive, with results meeting expectations on a constant currency basis. North America showed a robust growth rate of 5.7%, and Europe followed with a 3.0% increase. The UK market also experienced material improvements from one quarter to the next.
The latest figures, published on 22 August, showed that like-for-like sales increased by 2.4%, while organic sales surged by 8.3%. Schultz attributed the improvement to a strong multi-brand model and favourable comparisons with the previous year.
Despite a volatile market environment, JD Sports maintained promotional discipline and managed its inventory proactively, which helped support gross margins during the period. The financial report noted a gross margin of 48.4%, a slight decline from the previous year due to challenges in the apparel and online sectors.
Schultz expressed satisfaction with the company’s performance, especially the double-digit organic sales growth seen in North America and Europe. This success is largely credited to JD Sports’ strategy of rolling out new stores effectively in these regions.
JD Sports is strategically positioning itself for substantial growth in the US market, with plans for further expansion.
