UK retailer JD Sports' sales surge 3.6% in FY24

29 Mar '24

3 min read

Pic: Cerib - stock.adobe.com

Insights

JD Sports Fashion reported a 3.6 per cent sales increase to £10.5 billion ($13.25 billion) in FY24, with a PBT of £915-935 million expected.
LFL sales rose 4.2 per cent, driven by 215 new stores globally.
The company's gross margin dipped slightly to 47.3 per cent in FY24.
Growth varied across regions, with Europe and Asia Pacific showing strong performance.

JD Sports Fashion Plc, a leading UK-based global retailer, has reported total sales of £10.5 billion (approximately $13.25 billion) in financial year 2024 (FY24), which marks a 3.6 per cent increase over the previous year. This growth was achieved despite a 6.2 per cent negative impact from disposals and a positive boost of 1.4 per cent attributable to an additional 53rd week. The company's pre-tax profit (PBT) for the year ending in January 2024 is expected to meet the revised guidance range of £915-935 million.

Throughout the year, JD Sports recorded a 4.2 per cent rise in like-for-like (LFL) sales across all regions, with an organic sales growth of 8.4 per cent, showcasing the company's robust performance in a competitive market. The expansion strategy was marked by the opening of 215 new JD stores worldwide, further cementing its global presence, the company said in a press release.

The group's gross margin experienced a slight decline, ending the year at 47.3 per cent, down by 50 basis points from the previous year. The fourth quarter results indicated a marginal increase in LFL sales on a constant currency basis when compared to the previous financial year.

In the UK and Republic of Ireland (ROI), there was a modest full-year LFL sales increase of 0.8 per cent and an organic growth of 1.5 per cent, though the fourth quarter saw a decline in sales. Europe, on the other hand, showed impressive growth with a 7.7 per cent increase in full-year LFL sales and a 15.3 per cent jump in organic sales, buoyed by new store openings which also contributed to a positive fourth quarter.

North America reported a full-year LFL sales increase of 4.1 per cent and organic growth of 9.3 per cent, with the fourth quarter maintaining momentum despite the previous year's high comparative growth. The Asia Pacific region was particularly strong, with an 11.8 per cent increase in full-year LFL sales and a significant 17.7 per cent in organic growth, driven by new store openings and strong performance in markets like New Zealand and Thailand.

"In FY24, we outperformed the sportswear market, reflecting the strength of our business. We achieved like-for-like sales growth of over 4 per cent, organic growth of over 8 per cent and our athleisure fascias achieved organic growth of over 10 per cent. We made good strategic progress, opening 215 new JD stores, and focusing our effort on developing JD and enhancing EPS through taking full control of ISRG and MIG. We expect profit before tax for the year to be in line with the guided range given in January,” said Regis Schultz, CEO of JD Sports Fashion.

Fibre2Fashion News Desk (DP)

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