JD Sports Earnings: Revenue Climbs Despite ‘Challenging Market’

JD Sports Fashion (LON: JD.) reported its unaudited FY24 results on Friday. The company's revenue increased by 2.7% for the 53 weeks ending February 3, 2024, reaching £10.54 billion.

The rise in revenue is despite a challenging market. The company achieved organic sales growth of 9% and 11% in Premium Sports Fashion sales, outperforming the market even during peak trading periods.

“This strong revenue performance was delivered in a challenging market, particularly through our peak trading period.,” said JD Sports CEO Régis Schultz.

He also highlighted the company's strategic progress, including the opening of over 200 new JD stores, which exceeded sales expectations by 20% and delivered a payback period of less than three years.

JD Sports also proposed acquisitions of Courir in Europe and Hibbett, Inc. in North America, while taking full control of ISRG and MIG and divesting non-core businesses.

Despite a 7.5% decline in profit before tax and adjusting items to £917.2 million due to investments, profit before tax rose by 66.7% to £811.2 million.

The gross margin slightly decreased to 48% and adjusted basic earnings per share dropped by 9.1%.

JD Sports remains on track to meet its full-year profit guidance of £955 million to £1.035 billion. Schultz expressed confidence in the company's strategy for long-term growth and value creation, with plans for more store openings and a new website platform rollout in FY25.

The company proposed a final dividend of 0.6p, with the total proposed dividend up 12.5% to 0.9p.