LONDON: JD Sports Fashion Plc, a leading global retailer of sports, fashion and outdoor brands, reported increased revenue for its fiscal year ending Feb. 1, 2025, while announcing a sharper focus on profitability and shareholder returns.
The company said Thursday that group revenue rose 12% on a constant currency basis, with organic sales growth of about 6%, more than double the market rate. Profit before tax and adjusting items was £923 million ($1.17 billion), in line with earlier guidance.
CEO Régis Schultz attributed the performance to the company’s “strong and agile, multi-brand model,” as well as disciplined pricing in a promotional market. The company maintained a 48% gross margin, excluding acquisitions.
Key Financial Highlights
– Revenue: £11.46 billion ($14.5 billion), up 10.2% from the previous year.
– Operating profit before adjustments: £937 million ($1.19 billion), nearly flat year-over-year.
– Adjusted earnings per share: 12.39 pence, down 3.3%.
– Dividend per share: 1.00 pence, up 11.1%.
– Operating cash flow: £1.25 billion ($1.59 billion).
JD Sports completed two major acquisitions during the period — U.S.-based Hibbett and France’s Courir — expanding its footprint in North America and Europe. However, these deals contributed to a slight decline in gross margin due to their lower profitability.
The company also faced higher costs from investments in infrastructure, cybersecurity and compliance, which weighed on profits. Net cash before lease liabilities fell sharply to £52 million ($66 million) from £1.03 billion ($1.31 billion) a year earlier.
In April, JD Sports revised its strategy, prioritizing profitability over rapid expansion in response to slower market growth expectations. The company also announced a £100 million ($127 million) share buyback program after the fiscal year ended.
Outlook
Despite market volatility and uncertainty over U.S. tariff changes, Schultz expressed confidence in JD Sports’ ability to outperform competitors and improve profit margins.
“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,” he said.
Trading in the first quarter of the new fiscal year was in line with expectations, the company said.