31st May 2024 09:41
(Alliance News) - JD Sports Fashion PLC shares fell on Friday, as the company reported a decline in adjusted profit and lamented the effects of recent "unseasonably mild weather".
The Lancashire, England-based sports-fashion retail company said revenue climbed 4.1% to GBP10.42 billion in the 53 weeks ended February 3, from GBP10.13 billion in the 52 weeks ended January 28, 2023.
In the 52 weeks ended January 27, 2024, revenue was up 2.7% to GBP10.40 billion from GBP10.13 billion a year prior.
"Trading was impacted in the first half of the year by slower camping sales and in the second half of the year by unseasonably mild weather which affected sales of winter apparel and accessories," JD Sports said.
Notably, in Premium Sports Fashion, "All major European countries saw strong organic sales growth with Italy, Portugal and Spain leading the way," JD Sports noted. The unit generated 81% of Sports Fashion revenue in financial 2024 and was up 9.8% annually on a 52-week basis.
Cost of sales increased 4.7% to GBP5.50 billion in the 53 weeks ended February 3 from GBP5.25 billion in the 52 weeks ended January 28, 2023.
Pretax profit jumped 67% in the 53 weeks ended February 3 to GBP811.2 million from GBP486.7 million in the 52 weeks ended January 28, 2023.
However, adjusted pretax profit in the 52 weeks to January 27 fell 8.0% to GBP912.4 million compared to GBP991.4 million a year prior.
JD Sports shares fell 9.9% to 120.50 pence each on Friday morning in London.
Despite the decline in adjusted profit, JD Sports proposed a final dividend of 0.6 pence per share, increasing its total payout by 13% to 0.9p from 0.8p a year prior.
In its outlook, JD Sports said it started its first financial quarter was in line with its own expectations. The company plans to open over 200 new JD stores in FY25, similar to FY24.
Chief Executive Officer Regis Schultz said: "We are on track to deliver our profit guidance for the full year. Looking further ahead, we have a strong business model and a clear strategy to deliver long-term growth and value creation for our shareholders."
By Tom Budszus, Alliance News slot editor
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