JD Sports increases revenue and profit in H1

JD Sports Fashion Plc reported organic sales growth of 6.4 percent with like-for-like (LFL) sales growth of 0.7 percent in the first six months. Group revenues were up 5.2 percent to 5 billion pounds and up 6.8 percent in constant currency.

The company said that the trading performance in the first half was in line with expectations and its overall guidance range of 955 to 1,035 million pounds remains unchanged.

Commenting on the results, Régis Schultz, chief executive officer of JD Sports Fashion, said in a statement: “Our success is a direct reflection of the strength and agility of our global, multi-brand strategy, which allows us to adapt swiftly to fast-changing industry trends across the world, and our operational excellence. Our acquisition of Hibbett is a key milestone in our international development and advances the global nature of the group through our strengthened position in the US.”

The company added that in a volatile market, and excluding Hibbett, gross margin was down 10 basis points (bps), while operating margin was in line with the prior period at 8.8 percent. Profit before tax and adjusting items was 405.6 million pounds with statutory reported profit before tax of 126.3 million pounds.

JD Sports achieved double-digit organic growth across Europe, North America and Asia Pacific. The company opened 83 new JD stores, including the largest ever JD store in Stratford, London in April, and is on track to open around 200 new JD stores in the full year. The company transferred an additional 19 stores to JD from Finish Line in the US, MIG in Eastern Europe and ISRG in Iberia.

During the period under review, JD completed the acquisition of Hibbett. adding presence in North America, through its 1,179 stores in southeastern USA. The company also achieved 3.4 percent LFL sales growth from the existing US community fascias and 4.5 percent LFL sales growth from its sporting goods fascias.