22nd Jun 2022 09:17
(Alliance News) - JD Sports Fashion PLC on Wednesday released its delayed annual results which showed the athleisure retailer booked a record performance in its recently ended financial year but warned that further growth would be held back by global volatility.
For the year ended January 29, the FTSE 100 listed firm doubled pretax profit to GBP654.7 million from GBP324.0 million the year prior. Pretax profit before exceptional items more than doubled to GBP947.2 million from GBP421.3 million.
This was also more than double the company's previous record pretax profit before exceptional items of GBP438.8 million in its pre-Covid financial year ended February 1, 2020.
The record profit came on revenue that grew 39% to GBP8.56 billion from GBP6.17 billion.
JD Sports attributed the UK performance to a "strong retention of sales through digital channels" in the first quarter during store closures, and robust demand returning upon the reopening as restrictions were relaxed.
It also noted its similarly strong performance in the US benefited from "favourable trading conditions" following the second round of fiscal stimulus from the US Federal Government.
The results had been delayed in early February to allow KPMG more time to complete the audit, and for JD Sports to report on the conclusion of Footasylum divestment "with greater certainty".
The retailer reaffirmed its disappointment with the decision of the UK Competition & Markets Authority to require the divestment of footwear seller, but noted a "number of parties" have expressed interest in acquiring the business.
Having decided to divide the controversial joint role of executive chair and chief executive officer, the firm shared that the process to recruit a new non-executive chair was "progressing at pace", and "a number of high calibre candidates" for CEO are under consideration.
This follows the departure of Executive Chair Peter Cowgill in late May.
The firm proposed an "enhanced" final dividend of 0.35 pence per share for the financial year, a 21% increase from the previous year's payout of 0.29p.
For four months following the end of January, JD Sports said like-for-like sales were 5% ahead year-on-year. This came despite a global shortage of certain footwear styles, which the company expects to improve over the rest of the year.
However, Interim Chair Helen Ashton sounded a note of caution: "Whilst we are encouraged by the resilient nature of the consumer demand in the current year to date, we remain conscious of the headwinds that prevail at this time including the general global macro-economic and geopolitical situation. Against this backdrop, the board believes that the headline profit before tax and exceptional items for the year end 28 January 2023 will be in line with the record performance for the year ended 29 January 2022."
Shares in JD Sports were down 0.6% to 106.15 pence each in London on Wednesday morning.
By Elizabeth Winter; [email protected]
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