JD Sports expects profit to cross one billion pounds in 2023

JD Sports Fashion in a preliminary results statement said that total revenue increased to 10.125 billion pounds, up 12 percent on the prior year.

The company added that trading to date in the current financial period saw growth in organic sales at constant exchange rates of more than 15 percent after 13 weeks.

"We expect that the group's headline profit before tax and adjusted items for the 53 week period will be in line with the current average consensus expectations of 1.03 billion pounds." said Andrew Higginson, chair of JD Sports Fashion Plc.

The company’s total gross margin for the period reduced to 47.8 percent compared to 49.1 percent last year, while profit before tax and adjusted items was 5 percent higher than the prior period at 991.4 million pounds.

The company’s basic earnings per ordinary share decreased to 2.76p and adjusted earnings per ordinary share increased to 13.39p.

Sports model focus

Commenting on the trading update, Régis Schultz, the company’s chief executive officer added: “Since joining the group in September 2022, I have undertaken a full strategic review with the results of this presented at a capital markets event on February 2, 2023.

“I concluded at an early stage that the branded fashion businesses within our sports fashion segment, whilst attractive, were not integral to the development of our core sports fashion proposition and so we have subsequently divested a number of businesses in this area.

“Consequently, the group profit before tax decreased to 440.9 million pounds compared to 654.7 million pounds in 2022.”

The JD Sports board has proposed paying a final dividend of 0.67p bringing the total dividend payable for the 52 week period ended January 18 2023 to 0.80p.