Yahoo Finance £1 billion profit target looks far away at JD Sports, but sales recover in tight market
JD Sports today bounced back from a January profit warning with sales growth in both Europe and the US. But profits for the year missed the £1 billion earlier hoped for by some way at £917 million. That was down on £991 million a year ago.
Régis Schultz, Chief Executive Officer, said: “We made important strategic progress: putting the JD Brand First through opening over 200 new JD stores; strengthening our Complementary Concepts through the proposed acquisitions of Courir and, announced after the period end, Hibbett.”
He admits this has been a “challenging market” for the year to February.
The profit warning in January saw it drop guidance for profits from above £1 billion to between £915 million and £935 million.
Organic sales grew by 9%, with like-for-like growth of 3.8% for the year.
Nevertheless, its UK business was in decline, with an 8.3% slump in revenues to £3.51 billion as it was particularly affected by the group’s disposals.
The group was boosted by the opening of more than 200 shops, and plans to open a further 200 over the current financial year.
Peel Hunt said in a note: “JD’s FY24 prelims landed towards the bottom of the range at £917m. They reflect a tricky second half in which promotional activity was high. Current trading is not eye-catching, but it is in line.”
