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JD Sports Fashion PLC on Wednesday reported a stronger year of sales for financial 2023, though profit declined. In the financial year that ended January 28, the Lancashire-based sportswear retailer said revenue rose by 18% to £10.13 billion from £8.56 billion the year before. This beat the revenue forecast by Shore Capital Markets of £9.67 billion. However, pretax profit fell by 33% to £440.9 million from £654.7 million The lower profit was due to higher adjusting items, ‘principally [related] to a non-cash movement in the present value of future put and call options held with minority shareholders in certain subsidiary businesses and losses incurred in divesting our non-core branded fashion businesses’, JD Sports explained. Operating profit was down 29% to £509.8 million from £721.2 million. Since the year-end, JD Sports said organic constant currency sales growth has been over 15%. Chair Andrew Higginson said: ‘The group is reassured with trading to date in the new financial period with growth in organic sales at constant exchange rates of more than 15% after 13 weeks. This performance is further evidence that consumers worldwide are more attracted than ever to JD’s differentiated proposition with its attention-grabbing in-store experience, breadth in the range of brands and availability of key styles.’ Looking ahead, JD Sports expects to meet current average market consensus expectations for adjusted pretax profit of £1.03 billion in financial 2024, which would be up from £991.4 million achieved in financial 2023. JD raised its final dividend to 0.67p per share from 0.35p a year before, bringing the annual total to 0.80p, up from 0.35p a year before. Shares were down 5.2% at 161.45 pence each on Wednesday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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