JD Sports annual revenues jump 33 percent

JD Sports Style in its preliminary results for the 53 weeks to February 3, 2018 said that the total revenue increased by 33 percent to 3,161.4 million pounds (4,538.9 million dollars), while like for like store sales across all Group fascias, including those in Europe, increased by 3 percent. The overall like for like growth including online was 7 percent. Profit before tax improved 24 percent to 294.5 million pounds (422.8 million dollars).

Commenting on the company’s performance, Peter Cowgill, the company’s Executive Chairman, said in a media statement: “I am delighted to report that this has been another period of significant progress for the group with headline profit before tax and exceptional items increasing by a further 26 percent to 307.4 million pounds. After delivering a headline profit of 100 million pounds for the first time in the year to January 2015, the headline profit has increased by more than 200 million pounds over the subsequent three years, a rise in excess of 200 percent. The board remains confident in the robustness and international potential of the JD proposition and is excited by the major developments ahead.”

Highlights of JD Sport’s annual results

Total gross margin in the year of 48.4 percent, the company said, was slightly behind the prior year’s 48.9 percent. Operating profit (before exceptional items) increased by 62.6 million pounds (89.8 million dollars) to 308.8 million pounds (443.3 million dollars). JD Sports added that operating profit (before exceptional items) increased by more than 200 percent over the last three financial years.

In the UK, the company invested a further 24.5 million pounds (35 million dollars) at the Kingsway site. The company said, works to expand the internal use of the initial warehouse are now substantially complete with initial fitting out of the 352,000 sq. ft. extension ongoing. It estimates that further expenditure of up to 30 million pounds (43 million dollars) is required to complete the fitting out of the leased extension, including automation equipment, the majority of which will be incurred in the current year. In addition, the company has secured the land and buildings at the site of our existing group head office in Bury, which it expects to remain as base for the foreseeable future. In Spain, a total of 39.5 million pounds (56.7 million dollars) has been incurred to date on the acquisition and subsequent fitting out of a new warehouse and head office in Alicante for our Sprinter business.

The company further stated that the primary focus of its capital expenditure remains our international retail expansion, which includes expenditure in retail stores outside the JD fascia’s core UK and Ireland domain. JD Sports anticipates that expenditure in the current financial year will be maintained at a similar rate.

The board has proposed paying a final dividend of 1.37p (2017: 1.30p) bringing the total dividend payable for the year to 1.63p (2017: 1.55p) per ordinary share, an increase of 5.2 percent. The adjusted earnings per ordinary share before exceptional items have increased by 32 percent to 25.15p and the basic earnings per ordinary share have increased by 30 percent to 23.83p.

Picture credit:JD Sports