JD Sports recovers and achieves record profits in the first half

Translated by

Ana Ibanez

Posted on

Sep 14 2021

JD Sports Fashion announced this Tuesday an increase in profits thanks to the great demand experienced in the first half of the fiscal year as a result of the relief of restrictive measures and closures.

Photo: Sandra Halliday

Profit before tax soared to 364.6 million pounds (about 428 million euros) during the six months to July 31, compared to 41.5 million pounds (48.7 million euros) obtained the previous year. Revenue increased to £ 3.88 billion, up from 2.54 billion previously, and the gross profit percentage rose to 48.5%, from 45.6%. Profit before taxes and exceptional expenses reached record levels at 439.5 million pounds, up from 61.9 million pounds a year ago and 158.6 million pounds in 2019.

This includes “significant contributions” from the United States, where earnings before interest, taxes, amortization and exception items increased to £ 245 million from £ 73.4 million a year earlier and £ 35.7 million to makes two. The contribution from the recently acquired Shoe Palace and DTLR companies was £ 72.9 million.

“All the group’s businesses have been able to take advantage of the favorable commercial conditions provided by the second round of fiscal stimulus from the Federal Government,” he said.

JD’s business in its main markets (UK and the Republic of Ireland) has also performed well, with profits increasing to £ 170.8 million, up from £ 52 million the previous year and £ 114.9 million. pounds from two ago. In the first quarter there was “strong retention of sales through digital channels while stores were temporarily closed, combined with strong repressed demand after reopening.”

But it was not only in those two big markets. During this period, the acquisition of control of Marketing Investment Group in Poland offered the group a presence in Eastern Europe for the first time and, although the pace of opening of new stores has been affected by the current restrictions on the execution of works and refurbishment in certain markets, it has continued its expansion. During the half year, it opened 21 new JD stores in Western Europe and six new stores in the Asia-Pacific region (four in Australia and two in Thailand). It also has 66 stores operating under the JD name in the United States.

The company also explained that its Outdoor business became profitable again, with a profit before tax and exceptional items of 10.8 million pounds, after suffering a loss of 16.8 million pounds last year.

“The group continues to demonstrate extraordinary resilience in the face of the many challenges arising from the coronavirus pandemic in many countries, widespread pressure on international logistics and other supply chain challenges, lower levels of influx to stores in many countries following the reopening and the continuing cost and administrative consequences resulting from the loss of duty-free trade with the European Union. Given these challenges, the group’s record performance in the first half is very encouraging. ” stated CEO Peter Cowgill.

“We remain fully confident that our inherent strengths in retail operations and dynamics provide us with a solid platform to move forward,” he continued.

More importantly, he said he is “encouraged by our results during the first weeks of the second half, although the influx of the public is still comparatively weak in many countries.”

“Based on several prudent but realistic assumptions for the upcoming peak period, which take into account the absence of stimulus in the United States during the second half of the year and the current challenges facing the supply chain across the industry, we currently expect to make a full-year pre-tax profit of at least £ 750 million, “he said.

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