JD Sports announces record profits of £991m

JD Sports has announced record results for its latest financial year ended 28 January, with profit before tax and exceptional items jumping from £947 million to £991 million.

Overall revenue for 2022 was up from £8.5 billion to £10.1 billion over the 12-month period.

The British sportswear giant said that it expects the group's pre-tax profits this year to be in line with current expectations of £1.03 billion.

The company's new chief executive Régis Schultz, who joined in September 2022, said that the decision to divest a number of branded fashion businesses that were "not integral" to its core fashion proposition, alongside the closing of its South Korea business, had led to adjusted items for the year nearly doubling to £550 million.

In February, JD Sports formerly completed the sale of five "non-core" UK fashion brands to Frasers Group, as part of a deal worth nearly £50 million.

"Whilst we are encouraged by the resilient nature of the consumer demand in the current period to date, we remain conscious of the headwinds that prevail at this time including the general global macro-economic and geopolitical situation," said Andrew Higginson, chair, JD Sports.

UK & Europe

While pre-tax profits were down in the UK and Ireland from £386 million to £356 million compared to 2021, the company said that the region showed "robust performance" given that this period's results included a full annual charge for business rates. In the previous year, business rates were only fully payable from July when the government withdrew its Covid-19 related rates relief support programme.

JD Sports boss Régis Schultz said that the performance was underpinned by "resilient consumer demand", with growth in organic sales up 12 per cent.

The retailer also saw recovery across its sports fashion businesses in Continental Europe, with the combined companies delivering pre-tax profits before adjusted items of £92.6 million, up from £29.2 million in 2021 - with organic sales increasing by 34 per cent compared to 2021.

North America

The chief executive described 2022 as a year of "two halves" for North America, with the performance in the first half negatively impacted by supply chain challenges that saw reduced availability for certain key footwear styles. Given that footwear represents more than 80 per cent of total sales this had a big impact on growth.

However, trading improved throughout the second half as availability of products recovered - with sales up by five per cent.

Asia pacific

JD Spots saw strong results in the Asia Pacific region, with its collective sports fashion businesses bringing in £61.7 million before tax, up from £36.6 million in 2021. Growth in organic sales were up by 36 per cent compared with the previous year.

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