JD Sports posts 56 percent jump in annual profit

Total revenue at JD Sports Fashion increased by 31 percent in the year to 2,378.7 million pounds (2,955 million dollars), while like for like store sales for the period, including stores in Europe, increased by 10 percent, which the company said was another exceptional performance given the growth seen in previous years. The company's headline profit before tax and exceptional items of 244.8 million pounds (304 million dollars) was up 56 percent and profit before tax increased by 81 percent to 238.4 million pounds (295 million dollars).

Commenting on the positive trading, Peter Cowgill, Executive Chairman of the company, said in a media statement, “This has been another period of very significant progress for the group with the headline profit before tax and exceptional items increased by 56 percent to 244.8 million pounds (304 million dollars). Over a three- year period the result has improved by more than 190 percent. Whilst we must recognise that there are external influences which may impact the latter part of the year, notably inflationary pressures arising from Brexit, the board remains confident in the robustness of the JD proposition and believes that the group is well positioned for further profitable growth.”

Financial review of the JD Sports results

The company said, both segments saw improved margins with Sports Fashion increasing 49.4 percent and Outdoor increasing 43.7 percent.

Operating profit (before exceptional items) increased by 87.3 million pounds (108 million dollars) to 246.2 million pounds (305 million dollars) driven by a very strong performance in Sports Fashion with Outdoor delivering a profit for the first time. JD Sports said operating profit (before exceptional items) has now increased by approximately 140 percent over the last two financial years.

The board has proposed paying a final dividend of 1.30p bringing the total dividend payable for the year to 1.55p per ordinary share, an increase of 4.7 percent.

The adjusted earnings per ordinary share before exceptional items have increased by 55 percent to 19.04p, while the basic per share earnings increased by 83 percent to 18.38p.

“The foundation of this success remains our core Sports Fashion fascias where JD’s continued strength in its core markets is increasingly being complemented by momentum in our international development, with a net increase of 54 JD stores across mainland Europe during the year,” added Cowgill.

Picture:JD Sports