JD Sports Share Price Spiked 17.7% Higher on Its FY 2024 Results

The JD Sports Fashion PLC (LON: JD) share price spiked 17.7% after the company released its financial results for the 2024 financial year, which is the 53 weeks ended 3 February 2024. The company has projected its Pre-Tax Profit and Adjusted Items (PBT) for Fiscal Year 2024 to align with its estimated range of £915 million to £935 million. 

The projection reflects a steady financial stance, considering the detailed performance metrics and strategic initiatives undertaken throughout the year. In terms of sales performance, adjusted for currency fluctuations, the fourth quarter saw a slight increase of 0.1% in like-for-like sales and a notable 4.4% rise in organic sales. 

Cumulatively, like-for-like sales increased by 4.2% for the entire fiscal year, with organic sales surging by 8.4%. Overall sales revenue climbed by 3.6% to £10.5 billion, with gross profit margins recording at 47.3%. This fiscal year also marked the expansion of the company's retail footprint, with 215 new JD stores inaugurated.

Looking ahead to FY25, the company has provided an initial PBT forecast before accounting adjustments, ranging between £900 million and £980 million. The trading performance for the start of the new fiscal year has met the company’s expectations seven weeks into the period.

Breaking down the annual performance, the total sales of £10.5 billion represent a 3.6% year-on-year increase, factoring in a 6.2% decrease from disposals and a 1.4% gain from an additional trading week. The anticipated PBT aligns with the adjusted forecast, underscoring stable financial growth.

Quarterly like-for-like sales, when adjusted for currency impact, showed slight improvement. However, January experienced a slight decline due to heightened market promotions, primarily online, against a significantly high growth benchmark from the previous year. 

Despite this, the annual like-for-like sales advanced by 4.2%, with organic sales growing by 8.4%, showcasing progress across all regions.

Régis Schultz, CEO of JD Sports Fashion Plc, said: “In our FY24 financial year, we outperformed the sportswear market, reflecting the strength of our business. We achieved like-for-like sales growth of over 4%, organic growth of over 8%, and our athleisure fascias achieved organic growth of over 10%. We made good strategic progress, opening 215 new JD stores, and focusing our effort on developing JD and enhancing EPS through taking full control of ISRG and MIG. We expect profit before tax for the year to be in line with the guided range given in January.”

JD Sports share price. 

The JD Sports share price spiked 17.66% to trade at 136.55p from Wednesday’s closing price of 116.05p.