JD Sports profits slide due to slower than anticipated market

For the financial year to February 1, 2025, the fashion giant reported a 4% dip in profit before tax to £923m and a 0.3% dip in operating profit to £937m.

Total group revenues jumped 10.2% to £11.4bn, but gross margins slipped 20 basis points to 47.8%.

JD Sports said that the first quarter of the new financial year was trading in line with expectations.

Chief executive officer Régis Schultz said: “We increased Group revenue on a constant currency basis by 12% with organic sales growth of c.6%, more than double the market growth, thanks to our strong and agile, multi-brand model.

“We delivered a 48% gross margin, excluding the impact of acquisitions, which was in line with the previous period due to our full price commercial strategy and strong trading discipline in a promotional market.

“We concluded two important acquisitions in our key strategic markets—Hibbett in the US and Courir in Europe—while we continued to invest in our infrastructure and controls environment.

“In constant currency, our operating profit* was ahead of last year and our operating cashflow was over £1.2bn, demonstrating our strong cash generation. We achieved profit before tax and adjusting items of £923m, in line with our January guidance.

“In April, we announced we were adapting our strategy to reflect slower anticipated market growth and an increased focus on profitability, leveraging the investments we have made to support our growth in the key markets of North America and Europe, delivering strong cash generation and improving returns to our shareholders.

“Our focus on increasing shareholder returns is demonstrated by paying FY25 dividends of £52m, up 11% on the previous period, and after the period end, the commencement of a £100m share buyback programme.

“Overall trading in the first quarter of the new financial year has been in line with our expectations in a volatile market. Despite this volatility, and uncertainty surrounding the impact of US tariff changes, we look forward into the medium term with confidence that we can continue to outperform the market, improve our profit margin and create significant value for our shareholders.”