JD Sports scores record profit as in-store and online sales grow

 
Alys Key
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JD Sports grew sales in-store and online (Source: JD Sports)

JD Sports posted a record year this morning, as sales grew both in-store and online.

Shares in the retailer were up 6.5 per cent before lunchtime, as the City applauded the solid performance.

The figures

Revenue was up 33 per cent across the group to £3.1bn, while profit before tax grew 24 per cent to £294.5m.

Excluding exceptional items, pre-tax profit was over £300m, marking a new record for the company.

The retailer achieved like-for-like sales growth in its stores of three per cent, while online shopping sales were up over 30 per cent.

JD Sports boosted its dividend to 1.63pm up from 1.55p.

Why it's interesting

The retailer combined expansion with solid sales growth in its core business, adding 56 new stores in Europe as well as its first Australian branches.

This is the first set of results to include a full year of numbers from Go Outdoors, which JD Sports bought last year. Earnings before tax for the whole outdoors division, including the brand, were £23m, up from £7m last year.

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The group is targeting further integration of its acquisition, with Go Outdoors stock due to be moved to an existing JD Sports warehouse this financial year.

Meanwhile, the company is poised to make a major move into the US through the acquisition of Finish Line for £396m. This includes 931 stores including branded concessions at Macy's and will give the group a sizeable foothold stateside.

What JD Sports said

"The investments we have made over a number of years in developing our multichannel proposition and driving improved buying, merchandising and retail discipline have ultimately led to the creation of a world class sports fashion business which combines the best of physical and digital retail on an increasingly global scale," commented executive chairman Peter Cowgill.

"We are very encouraged by the progress that we are making internationally and we continue to look for further opportunities to bring our dynamic multichannel proposition to new markets around the world with the support of our key brands."

Read more: Top retailers pull ahead of other business sectors

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