JD Sports posts drop in revenue and profit

Total revenue at JD Sports Fashion plc decreased by 6.5 percent in the first half period to 2,544.9 million pounds (3,345.8 million dollars) including 4.6 percent drop in Sports Fashion category to 2,402.4 million pounds (3,158.4 million) and 30.2 percent sales in decline in Outdoor category to 142.5 million pounds (187.3 million dollars). The company said in a statement that total gross margin in the period across the group of 45.6 percent was 1.3 percent lower than the prior reflecting the promotional activity in stores in the UK and Europe after re-opening to clear non-seasonally relevant products.

Commenting on the company’s performance, Peter Cowgill, the group’s Executive Chairman, said: “Throughout the Covid-19 pandemic, our priorities have been to ensure the safety of our colleagues and customers, to preserve financial resources and limit the impact on profitability. Assuming a prudent but realistic set of assumptions for the peak trading period that reflect an uncertain outlook for consumer confidence, the ongoing challenges of attracting footfall to stores and the potential for further operational restrictions; we would presently anticipate delivering a headline profit before tax for the full year of at least 265 million pounds when calculated under IFRS 16 ‘Leases’.”

The company added that profit before tax and exceptional items decreased by 96.7 million pounds to 61.9 million pounds (81.3 million dollars). Within this, the profit before tax and exceptional items of the Group’s businesses in the United States has increased to 73.4 million pounds (96.5 million dollars) reflecting the positive impact of the temporary Government stimulus in the country.

Commenting on the outlook, the company further said that retail footfall remains comparatively weak and the recent strengthening of measures in many countries and the subsequent temporary closure of some stores reminds that Covid-19 remains an ongoing challenge. Reinstate guidance for the full year, the company said, it presently anticipates delivering a headline profit before tax for the full year of at least 265 million pounds hen calculated under IFRS 16 ‘Leases’.