JD Sports has just missed the high-profile £1bn profit target it set for itself last year, with a £917.2m total in the year to February 3. The sportswear giant said this reflected continued investment in its people, stores, systems and supply chain.
Sales were up 2.7% to £10.4bn, but Gross Margin dipped slightly to 48%, which it said reflected “elevated market promotional activity during peak trading.”
JD Sports flagged in January that its golden quarter was hit by discounting across the sportswear market in response to “cautious consumer behaviour.” It revised profit expectations to between £915m and £935m for the full year accordingly.
CEO Régis Schultz said that the first quarter of its financial year was “in line with expectations in a volatile market,” and it is on track to deliver its profit guidance for the full year.
He added that JD Sports had “outperformed the market” in terms of sales growth over the last year.
“This strong revenue performance was delivered in a challenging market, particularly through our peak trading period,” Schultz said.
“Looking further ahead, we have a strong business model and a clear strategy to deliver long-term growth and value creation for our shareholders.”
The sportswear retailer opened more than 200 new stores over the period, with plans for at least 200 more in its current financial year.
JD Sports noted its new stores had exceeded internal sales expectations by 20% on average, and have a payback below its three-year internal target.
Earlier this month, JD launched its first store in the Middle East in Bahrain’s Marassi Galleria Mall. The store, launched in partnership with global retailer and distributor GMG, sets the stage for JD’s wider expansion in the Middle East market.
