JD Sports Q4 LFL sales improve, outlook remains 'challenging'

JD Sports annual sales were 10.5 billion pounds, up 3.6 percent on the previous year, including a negative 6.2 percent impact from disposals and a 1.4 percent benefit from the 53rd week.

The company said in a statement that PBT for the year to January 2024 is expected to be in line with the revised guidance range of 915 million pounds to 935 million pounds.

Like-for-like (LFL) sales in the fourth quarter, on a constant currency basis, were marginally ahead of the previous financial year. For the full year, LFL sales were up 4.2 percent with all regions ahead of the previous year with organic sales growth of 8.4 percent.

Commenting on the results, Régis Schultz, CEO of JD Sports Fashion Plc, said: "We achieved like-for-like sales growth of over 4 percent, organic growth of over 8 percent and our athleisure fascias achieved organic growth of over 10 percent. We made good strategic progress, opening 215 new JD stores, and focusing our effort on developing JD and enhancing EPS through taking full control of ISRG and MIG. We expect profit before tax for the year to be in line with the guided range given in January.”

Highlights of JD’s LFL performance across markets

The company opened 215 new JD stores in the year, while the launch of new JD Status loyalty programme in the UK saw 800k downloads so far.

UK/ROI LFL sales were down 3.2 percent in the fourth quarter, while organic sales were down 2.5 percent. For the full year, LFL sales were up 0.8 percent with organic sales growth of 1.5 percent.

In Europe, fourth quarter LFL sales were up 0.9 percent and the new store openings across Europe helped deliver organic growth of 8.9 percent. For the full year, LFL sales were up 7.7 percent with organic sales growth of 15.3 percent.

The company further said that LFL sales in North America were up 2.1 percent against a previous year comparative of over 30 percent growth, in a highly promotional market. New store openings drove organic sales growth to 7.7 percent. For the full year, LFL sales were up 4.1 percent with organic sales growth of 9.3 percent.

In Asia Pacific, LFL sales during the quarter were up 8.3 percent with contributions from all main markets and particularly strong growth in New Zealand and Thailand. New store openings delivered organic growth of 12.3 percent. For the full year, LFL sales were up 11.8 percent with organic sales growth of 17.7 percent.

JD provides FY25 guidance

JD said that the market remains challenging due to less product innovation and elevated promotional activity in key markets, particularly online. The company anticipates trading conditions will improve through the year, helped by a busy sporting summer, softer comparatives with last year from Q2 and an improving product pipeline towards the end of the year.

First quarter of FY25 is expected to be the softest LFL period of the year and H2 is likely to be stronger than H1.

The company forecasts FY25 LFL sales growth between 1 to 4 percent organic sales growth between 6 to 9 percent and PBT to range between 955 million pounds to 1,035 million pounds.