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JD Sports profit doubles, revenues up 38 percent

By Prachi Singh

Jun 22, 2022

Management

Image: JD Sports

Total revenue at JD Sports Fashion Plc for the year increased by 38.8 percent to 8,563 million pounds significantly influenced by the impact of the recent acquisitions.

The company said in a release that total gross margin for the year increased to 49.1 percent and pre-tax profit doubled to 947.2 million pounds. The company plans to propose an enhanced final dividend of 0.35p per share, which recognises the performance of the group over the full year.

"Whilst we are encouraged by the resilient nature of the consumer demand in the current year to date, we remain conscious of the headwinds that prevail at this time including the general global macro-economic and geopolitical situation. Against this backdrop, the board believes that the headline profit before tax and exceptional items for the year ended January 28, 2023 will be in line with the record performance for the year ended January 29, 2022," said Helen Ashton, interim chair of the group.

Recent acquisitions boost JD Sports’ sales and profit

Shoe Palace acquisition completed on December 14, 2020 had revenues of 389.8 million pounds for the full year and 56.1 million pounds for the six week period post-acquisition.

DTLR, completed March 17, 2021 had revenues of 382.8 million pounds for the 46 weeks post-acquisition, MIG, completed April 30, 2021 had revenues of 175 million pounds for the 39 weeks post-acquisition, Deporvillage, completed August 3, 2021 had revenues of 67.8 million pounds for the 26 weeks post-acquisition and Cosmos completed October 21, 2021 reported revenues of 26 million pounds for the 14 weeks post-acquisition.

Elsewhere, the impact of the fiscal stimulus in the United States is reflected in the revenue increase in the group's pre-existing Finish Line business by 99.9 million pounds to 1,804.2 million pounds.

The JD business in the UK and Republic of Ireland saw revenues increase by 508 million pounds to 2,318.1 million pounds.

The company added that the group is reassured with the trading to date with total sales in the like-for-like businesses after four months 5 percent ahead of the same period in the prior year.