JD Sports has seen its annual profit more than double in the past year, new figures have revealed.
Trading in the company’s current fiscal year is 5% higher than a year ago as buyer demand for activewear continues in the wake of the Covid-19 pandemic .
The company’s pre-tax profit was £654.7 million for the year ending January 29, up from £324 million a year ago.
But he warned that economic turmoil triggered by supply problems and high inflation were creating headwinds.
Solid results: JD Sports has seen its annual profit more than double in the past year
JD Sports also said independent investigations and a governance review of regulatory issues indicated it needed to strengthen its board and improve internal controls as it recovers from the departure of the executive chairman of longtime Peter Cowgill.
Former boss Cowgill surprised investors last month with a quick exit from the bar, which pushed the group’s stock into the red.
JD Sports’ annual revenue jumped to £8.6 billion in the period, from £6.2 billion the previous year, and represents an increase of almost £2.4 billion. pound sterling. The group delivered a solid performance in the UK, Ireland and the US.
The FTSE 100-listed group expects its current financial year pre-tax profit to be in line with expectations, while acknowledging global and domestic economic pressures.
JD Sports Stocks were up 3.46% or 3.70p at 110.50p this morning, having fallen by more than 35% in the past year.
Chairman Helen Ashton said: “We remain mindful of the headwinds prevailing at this time, including the general global macroeconomic and geopolitical situation.”
JD Sports said its full-year profit was made amid global supply shortages of some key shoe styles, adding that supply is expected to gradually improve over the coming months.
He said: “This result was achieved in the face of an unprecedented series of challenges, including prolonged periods of temporary store closures in many markets, supply constraints for certain products due to factory closures within global supply chains of international brands, the turbulence of international logistics and the lingering administrative and financial consequences resulting from the loss of duty-free and frictionless trade with the European Union.
Ashton said the group’s financial performance in the United States had been encouraging and “had a positive long-term impact on both the group’s overall performance and its relationships with international brands”.
The retailer’s outdoor division returned to profitability during the period amid increased demand for UK holidays and “general recognition of the physical and mental health benefits of spending time outdoors “.
The division made a profit of £25.9m, compared to a loss of £6m a year ago.
The London-listed sportswear retailer has been the subject of several investigations by the Competition and Markets Authority.
More recently, the CMA provisionally found that the company, along with a rival, had breached competition law regarding the prices of Rangers Football Club goods.
In February, JD Sports was fined £4.3m by the CMA for exchanging information with Footasylum, which it had, at the time, agreed to buy for £90m.
JD Sports, which splits the post of chairman and chief executive, said it was in the process of filling both positions.
Ashton said today: “The CEO recruitment process is underway with a number of high caliber candidates at various stages of review, including some who have only recently made known their interest in the position. job.”
She added: ‘A process to recruit a new non-executive chairman is also progressing at pace.
The retailer’s board increased the group’s total dividend to 0.35pa per share, from 0.29pa per share.
Mamta Valechha, analyst at Quilter Cheviot, said: “Investors this morning will welcome the long-awaited FY22 results – which we believe should be reassuring, given the absence of accounting issues, with the delays additional time to properly finalize work streams on corporate governance.Commercial also remains strong.
“JD provided a pre-closing update in May, so today’s results for fiscal 2022 don’t come with many surprises, but JD still recorded a 2% beat in earnings. net.
“However, what was interesting was that gross margins were better almost everywhere, with hardly any signs of a rebound. Operating margins improved strongly, with the UK returning to historic levels, Europe approaching group averages and the US strong.
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