JD Sports posts record first half as estate expands

JD Sports Fashion reported “another record result” for its half year on Tuesday, with operating profit ahead 33% year-on-year at £103.3m off revenue of £1.367bn - up 41%.

The FTSE 250 retailer said its gross profit margin was down slightly at 47.4% for the 26 weeks to 29 July, compared to 48.1% a year ago, but its profit before tax was up 33% at £102.7m.

Basic earnings per ordinary share were 36% higher at 8.09p, with the board lifting the interim dividend 4% to 0.26p per share.

Net cash held at period end was £222.7m, down from £231.8m.

“I am delighted to report that the group continues to make strong progress with profit before tax for the first half increased by a further 33% to a new record level of £102.7m,” said executive chairman Peter Cowgill.

“This is another pleasing result demonstrating the strength of our highly differentiated multichannel proposition and our ability to prosper in an increasingly competitive market for athletic inspired footwear and apparel.”

On the operational front, JD said it saw further “encouraging” like-for-like sales growth in stores and “strong growth” online, while its estate expanded by a net 12 JD stores in the UK and Ireland during the period.

The company’s international development also continued, with a net increase of 23 JD stores across mainland Europe, the opening of the first JD stores in Australia, and the addition of more stores in Malaysia.

A positive contribution was also made during the half-year by the company’s outdoor equipment retail brand Go Outdoors.

“The base of our ongoing excellent multi channel retail performance comes from the continued strength of our core UK and Ireland Sports Fashion fascias,” Peter Cowgill added.

“We have strengthened our foundations by significant progression internationally both instore and online so that the JD fascia now has a much broader store and multichannel consumer reach and brand influence globally.”

Cowgill said the board was “encouraged” by the sales to date in the second half which had continued at similar levels to those in the first half, supporting the company’s “continued confidence” in the “robustness” of the JD proposition.

“We expect the year end outturn to be towards the upper end of market expectations, which currently range from approximately £268m to £290m, and remain confident that we are appropriately positioned to deliver further profitable growth and enhance long term shareholder value.”