JD Sports has reported an 8.1% fall in operating profit for 2023/24 despite a revenue increase.
- Revenue grew by 2.7% to £10.4bn during the period, amid challenging market conditions.
- Different geographic regions showed varied performance, with notable revenue shifts across the UK, Europe, North America, and Asia Pacific.
- Online sales decreased by 7.6% as consumer behaviour shifts back towards in-store shopping.
- The company is pursuing significant strategic initiatives, including store expansions and potential acquisitions.
JD Sports Fashion has reported a notable 8.1% decrease in operating profit before adjustments for the 2023/24 fiscal year. Despite this decline, the company experienced a 2.7% increase in revenue, reaching a total of £10.4 billion. This performance is set against a backdrop described by the company as a “very challenging market”.
In the 52 weeks leading to January 2024, JD Sports’ profit before tax and adjustments fell by 8% year on year to £912 million. The company attributes this unexpected reduction to lower than anticipated revenue in the latter half of the year and ongoing investment costs.
Geographically, the UK’s revenue saw an 8.3% decline, resulting in £3.5 billion. In contrast, Europe showed a robust 16.3% increase to £3.1 billion, with North America and Asia Pacific also reporting growth at 8.4% and 7.5%, respectively.
A shift in consumer behaviour is evident as in-store sales increased, with retail stores witnessing an 8.9% rise to £8 billion. However, online sales dropped by 7.6%, reflecting a reversion to pre-pandemic shopping habits and the company’s focus on physical retail investments.
Aligning with its “JD brand first” strategy, the retailer successfully opened over 200 new stores in the fiscal year and plans an additional 200 store openings in FY25. Strategic moves are further evidenced by proposed acquisitions and restructuring efforts, aiming to strengthen and streamline operations.
The footwear category performed strongly, with a revenue growth of 8.2% amounting to £5.9 billion. However, clothing sales lagged, declining by 4.3% to £3.4 billion, partly due to unseasonably mild autumn and winter weather. Accessories and other categories, including outdoor equipment and services, showed positive growth.
JD Sports has maintained its full-year profit guidance, projecting figures between £955 million and £1 billion. CEO Régis Schultz remains optimistic, citing strategic progress in brand prioritisation, effective governance, and sustained investments as key drivers for anticipated long-term growth and value.
JD Sports remains steadfast in its strategic pursuits, navigating a volatile market while focusing on future growth.
