Profits have slumped at $1bn-chasing JD Sports, despite overall turnover being up for the year, with a “volatile market” and US tariffs among factors blamed for the dip.
Pre-tax profits profit before tax and adjusting items were down 4% YoY at £923m, although the firm noted that this is in line with January guidance and reflects the continued investment in infrastructure, controls and security, on increased turnover of £11,458m, in the financial year to the 1st of February 2025, marking another miss for the ambitious £1bn annual profit target the Bury sportswear retailer set itself in September 2023.
The firm added that other factors such as slow growth in the wider athleisure market, increased labour costs, and the complex and lengthy regulatory process attached to acquiring French retailer Courir had added to the drop in bottom line, in a briefing to analysts from CEO Régis Schultz this morning. It added that more global store openings had added to its overall revenues.
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Schultz added: “In April, we announced we were adapting our strategy to reflect slower anticipated market growth and an increased focus on profitability, leveraging the investments we have made to support our growth in the key markets of North America and Europe, delivering strong cash generation and improving returns to our shareholders.
“Our focus on increasing shareholder returns is demonstrated by paying FY25 dividends of £52m, up 11% on the previous period, and after the period end, the commencement of a £100m share buyback programme.
“Overall trading in the first quarter of the new financial year has been in line with our expectations in a volatile market.
“Despite this volatility, and uncertainty surrounding the impact of US tariff changes, we look forward into the medium term with confidence that we can continue to outperform the market, improve our profit margin and create significant value for our shareholders.”
In its home UK market, revenue fell 3.7% to £2,66bn, driven in part by the divestment of non-strategic brands over the previous 12 months. But organic sales were also down 1.1% and like-for-like sales dropped 3%.
Shares in JD were down around 8% in early trading on Wednesday following the briefing.
