Leading UK-based sports-fashion retailer JD Sports Fashion has reported revenue growth of 5.2 per cent to £5,032.2 million (~$6,599 million) in the first half of fiscal 2025 (H1 2024: £4,783.9 million (~$5,697.6 million)). Sales growth in constant currency was 6.8 per cent.
JD Sports Fashion reported a 5.2 per cent revenue growth to £5.03 billion (~$6.6 billion) in H1 of fiscal 2025, with a 6.4 per cent organic sales increase.
The acquisition of Hibbett is seen as a significant step in expanding its US presence.
Despite currency headwinds impacting profits, the company remains confident in its growth strategy and operational strength.
Organic sales growth was 6.4 per cent, comprising 0.7 per cent like-for-like (‘LFL’) sales growth and 5.7 per cent from net new space (‘non-LFL’). The constant currency growth of 6.8 per cent included the benefit of reporting period misalignment with the prior period due to the 53rd week at the end of FY24, which added 1.9 per cent. This was partially offset by the impact of acquisitions, including Hibbett for £63 million (~$82 million), and disposals since H1 FY24, which reduced growth by 1.5 per cent. Neither of these are included in organic sales growth.
“We have today reported record interim results with group revenue of £5.0 billion (~$6.5 billion), and Profit before tax and adjusting items of £405.6 million (~$531.9 million), underscoring our ability to outperform the sector in a volatile global marketplace. Our success is a direct reflection of the strength and agility of our global, multi-brand strategy, which allows us to adapt swiftly to fast-changing industry trends across the world, and our operational excellence. This ensures we continue to deliver an industry-leading customer proposition both in store and online,” Régis Schultz, chief executive officer of JD Sports Fashion Plc, said.
“Our acquisition of Hibbett, which was completed just before the period ended, is a key milestone in our international development and advances the global nature of the group through our strengthened position in the US. I remain confident in the delivery of our exciting growth plans for North America and that the group is well positioned to continue growing its share in the world’s largest sportswear market. I am very proud of our teams across the globe, whose dedication and hard work have been instrumental in achieving these results. Our strong business model and clear strategy position us to deliver long-term growth and value creation for our shareholders,” added Schultz.
“Our trading performance in the first half was in line with our expectations, and our overall guidance range of £955-1,035 million (~$1,252.48-$1,356 million) remains unchanged. As highlighted in our Q2 FY25 trading update, we are experiencing currency headwinds this year as the pound strengthens against the US dollar and the euro. Our guidance range was based on certain exchange rates. Foreign exchange impacts reduced profit before tax and adjusting items by £6 million (~$7.8 million) in H1, and at current rates, we expect the H2 impact to be £20 million (~$26.22 million),” the company said in a press release.
The company ended the period with 4,506 stores worldwide. This increase reflects the inclusion of 1,179 stores from the Hibbett acquisition. Excluding Hibbett, JD Sports opened 117 stores and closed 107, mainly due to the planned rationalisation of underperforming non-JD MIG stores, primarily in Poland, as well as relocations and Macy’s closures in North America. The rationalisation of the MIG portfolio is another benefit from the NCI buyout last year, as the company now has the freedom to improve the overall business’s profitability. The total square footage of the store portfolio at the period end was 18.9 million, equating to 4,199 sq ft per store, an increase of 1.1 per cent from the start of the period.