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Sales soar at JD Sports but pandemic will hit full-year results

By Don-Alvin Adegeest

7 Jul 2020

Business

JD Sports posted surprising results and impressive revenue before the start of the global pandemic. The sporting giant saw sales increase 30 percent to 6.1 billion pounds, beating forecasts whilst pre-tax profits rose 3 percent to 348.5 million pounds.

Nigel Frith, Senior Market Analyst at AskTraders.com, said shoppers are cautious about malls and facing large crowds, despite the government relaxing measures for social distancing.

“The change in consumer behaviour is starting to show through with browsing still considered as off-limits by many consumers, although those that do enter shops tend to spend more,” Frith said in an email to FashionUnited.

“This is a trend that we will probably see replicated across the industry. Browsing, most likely happens online with consumers making fewer trips to the shops but spending more when they do go.”

JD Sports warned the pandemic is expected to hurt full year results for year ending 30th January 2021.

“It is worth keeping in mind that JD Sports has a younger customer, this is a group which could be particularly affected by a tough jobs market meaning that the outlook for the retailer remains uncertain and supports the firms decision not to declare a dividend and instead preserve cash.”

Image via JD Sports