JD Sports reported an 8.1% decrease in operating profit before adjustments, despite a 2.7% revenue rise for 2023/24, citing increased wages and investments as primary factors.
- The company achieved a revenue of £10.4 billion during the 52 weeks to 27 January 2024, marking a 2.7% increase compared to the prior year.
- Profit before tax and adjustments fell by 8% to £912 million, hindered by lower revenue in the latter half of the year and continued investment costs.
- The UK’s revenue saw a decline of 8.3%, while Europe and North America experienced growth, and Asia Pacific sales rose by 7.5%.
- Retail store revenue increased by 8.9%, whereas online sales dropped by 7.6%, illustrating consumers’ return to physical stores and JD Sports’ investment focus.
JD Sports, in its latest financial report, has highlighted an 8.1% decline in operating profit before adjusting items, amounting to £973.9 million for the 2023/24 period. This downturn comes amidst a revenue increase of 2.7%, driven significantly by rising wages and the costs associated with ongoing investments.
Over the course of 52 weeks leading to 27 January 2024, JD Sports achieved a revenue figure of £10.4 billion. This represents a 2.7% rise when contrasted with the preceding year, in what the company describes as a notably challenging market.
The profit before tax, adjusted for certain items, presented an 8% year-on-year reduction, standing at £912 million. This performance fell short of expectations, primarily due to decreased revenue in the latter half of the year and sustained investment expenditures.
Regionally, JD Sports experienced varied performances; the UK witnessed an 8.3% revenue drop to £3.5 billion. In contrast, Europe and North America recorded revenue increases of 16.3% and 8.4%, respectively, with Europe reaching £3.1 billion and North America £3.4 billion. The Asia Pacific region also reflected positive growth with a 7.5% increase in sales, totaling £524.8 million.
Revenue distribution for the 52-week period saw the UK contribute 33%, North America 32%, Europe 29%, and Asia Pacific 5% to the total.
By sales channel, an 8.9% growth in retail store revenue to £8 billion was observed, showcasing a shift back to pre-pandemic levels of in-person shopping. Conversely, online sales experienced a 7.6% decline to £2.3 billion, attributed to this consumer shift and JD’s store-focused investments.
Under its ‘JD brand first’ strategy, the company opened over 200 new retail locations and plans to inaugurate another 200 stores by the next financial year.
In terms of product categories, footwear revenue increased by 8.2% to £5.9 billion. Meanwhile, clothing sales, impacted by milder autumn and winter weather, saw a 4.3% decline to £3.4 billion. Accessories revenue went up by 6.4% to £669 million. Additionally, other revenues, inclusive of outdoor living equipment and gym memberships, grew substantially by 17.3% to £543.7 million.
JD Sports has reaffirmed its full-year profit guidance, expecting figures to range from £955 million to £1 billion as initially announced.
CEO Régis Schultz remarked on the strategic strides made, including prioritising the JD Brand, acquiring complementary businesses, and streamlining operations by taking full control of key retail groups. Schultz expressed confidence in their global growth strategy despite market volatility, underlining a strong business model oriented towards long-term value for shareholders.
Despite current market volatility, JD Sports remains focused on strategic growth and long-term value creation.
