As it increased its investment in store growth and modernised its technological capabilities, JD Sports reported a decline in profitability.
The sporting giant’s pre-tax profits dropped 11 per cent to US $ 958 million in the 52 weeks ending 1st February, partly as a result of increased expenses related to establishing a cyber security function. Adjusting items included, pre-tax profits fell 4 per cent to US $ 1,237 million.
It credited good trade discipline in a promotional market for the 10 per cent increase in sales to US $ 15.41 billion. However, a difficult business climate and the year-end divestiture of non-strategy brands caused UK revenues to drop 3.7 per cent to US $ 3.62 billion.
The retail behemoth finished acquiring Hibbett in the US and Courir in Europe throughout the year, adding 1,485 stores in both areas.
The group has created franchisee relationships and developed 223 additional JD locations in South Africa, Indonesia, and the Philippines.
With organic sales growing 3.1 per cent in the 13 weeks leading up to 3rd May, JD Sports reported that first quarter trading was in line with expectations. Revenues in the UK increased 2 per cent.
