JD Sports posts rise in H1 sales and profit

Total revenue for JD Sports Fashion plc for the first half increased to 3,885.8 million pounds with a number of recently acquired businesses included in the first half results for the first time.

Commenting on the first half trading, Peter Cowgill, the company’s executive chairman, said: “The group continues to demonstrate outstanding resilience in the face of numerous challenges arising from the continued prevalence of the Covid-19 pandemic in many countries. Given these challenges, the record result that the group has delivered in the first half with a profit before tax and exceptional items of 439.5 million pounds is extremely encouraging.”

Review of JD Sports’ first half results

The company said in a statement that among the recently acquired businesses, Shoe Palace revenue was 204.8 million pounds for the full 26 week period, DTLR revenues were 192.5 million pounds for the part period post acquisition and MIG revenues were 64.5 million pounds for the part period post acquisition.

The company added that the impact of the fiscal stimulus in the United States is reflected in the fact that revenues in the group’s pre-existing Finish Line business increased by 127.8 million pounds to 953.3 million pounds. The core JD business in the UK and Republic of Ireland also posted a revenue increase of 323.1 million pounds to 1,008.3 million pounds.

“It is most reassuring that the core JD business in the UK and Republic of Ireland performed strongly in the first half delivering a profit before tax and exceptional items of 170.8 million pounds. This result also includes a particularly strong performance from the group’s banners in the United States which have delivered a combined profit before tax and exceptional items of 245 million pounds,” Cowgill added.

Total gross margin for the first half increased to 48.5 percent largely due to a stronger margin in the United States where gross margins increased to 49.7 percent. Group profit before tax increased to 364.6 million pounds.

The company further said: “Assuming a prudent but realistic set of assumptions for the peak trading period ahead which take into account the absence of stimulus in the United States for the second half of the year, in addition to current industry-wide supply chain challenges, we presently anticipate delivering a headline profit before tax for the full year of at least 750 million pounds.”