JD’s profits hit £100m in record year
RETAILER JD Sports has reported its best-ever full year results as revenues rose 25% and underlying profits topped £100m for the first time.
The Bury company, which won TheBusinessDesk’s Masters award for best listed business in March, fully lived up to this status, as its results for the 52 weeks to February 1 showed 22% growth in profits from £81.9m to £100m as revenues soared from £1.2bn to £1.5bn.
As has been the case for the last two years, JD’s star performer was its core sports fashion stores, where an “exceptional” result was delivered. Like-for-like sales at its shops throughougt Europe rose 13% and operating profits increased by 18% to £107m.
Executive chairman Peter Cowgill said: “This result and its ingredients provide a robust platform for further profitable growth, at home and internationally.
“We believe that our collaborative approach to working with third party brands to create a unique, premium and often exclusive offer is a major contributor to our success. We have the utmost respect for the brands that we sell and believe in working in partnership with them to achieve their ambitions. This, combined with our market leading standards of visual merchandising and disciplines instore, provides the basis for international success.”
During the year the year the company opened 19 new stores abroad under the JD and Size? fascias, taking the total to 70. Further international growth is expected, JD said.
During the year JD sold its loss-making Bank fashion business to Hilco, and Bank was subsequently placed into administration. JD said it had suffered a loss on disposal of £6.3m but had recovered £18m of £28m Bank had owed the group.
JD reported progress in its ongoing turnaround of the Blacks and Millets outdoor clothing and accessories stores. Operating loss before exceptional items fell from £8m to £4.9m.
During the year the group invested £70.2m in its stores, overseas growth and and in new software systems, an increase of £22m on the previous year.
After the exit from Bank, it now has 660 sports fashion stores in the UK and Europe and 184 outdoor shops.
In addition, there were two JD branded gyms in Hull and Liverpool. The company said this venture remains a trial with no major rollout planned at this stage.
