JD Sports reports a 'strong' performance in a challenging market

The group was boosted by the opening of more than 200 shops, and plans to open a further 200 over the current financial year.

Its new stores have seen sales surpass expectations by around a fifth since opening to customers, JD Sports told investors.

However, it added that this was partly offset by disposals, after the company sold off five brands – Tessuti, Scotts, Choice, Giulio and Cricket – to rival Frasers Group.

Organic sales grew by 9 per cent, with like-for-like growth of 3.8 per cent for the year.

Nevertheless, its UK business was in decline, with an 8.3 per cent slump in revenues to £3.51bn as it was particularly affected by the group’s disposals.

Footwear continued to drive growth for the retailer, with an 8.2 per cent rise in sales, offsetting a fall in demand for apparel after milder weather over the autumn and winter had weighed on jackets and coats.

JD Sports also reported a pre-tax profit before adjusting items of £912.4m for the year, slipping by 8 per cent on the previous year.

It said this was linked to lower revenues over the second half of the year and investments designed to help the business in the longer term.

Regis Schultz, chief executive officer, said: “This strong revenue performance was delivered in a challenging market, particularly through our peak trading period.

“We have started the new financial year with Q1 in line with our expectations in a volatile market and we are on track to deliver our profit guidance for the full year.”

Commenting on JD Sports’s full year results, Julie Palmer, partner at Begbies Traynor, said: “Today’s bottom end of the range results from JD Sports show a retail giant struggling to find momentum in a tough retail backdrop that has seen many big names grapple with financial pressures. With like-for-like sales growth of 3.8 per cent for the full year, falling to a 0.7 per cent decline in Q125 (tthe first quarter), the figures are a reminder that even the most robust of retail brands are not impervious to the current economic headwinds.

“The acquisition of US rival Hibbett is a strategic move that should bolster JD’s presence in North America. This expansion is timely, as the US arm of the business is showing signs of resilience with recent sales faring better there than in its other regions.

“The strong recent performance of US peer Dick’s Sporting Goods also suggests the US market should continue to prop up the retailer as it faces weakness closer to home, especially in the UK market.

“Looking forward, JD undoubtedly has the potential for improvement, underpinned by its strong brand, clear strategy and resonance with younger consumers.

"However, this recovery does not seem imminent and JD must find a way to weather the storm while maintaining its relevance and appeal in the interim.”