JD Sports posts second quarter sales increase despite volatile market
JD Sports has seen its like-for-like sales increase by 2.4% in its second quarter as organic sales rose by 8.3%.
While like-for-likes in the 13 weeks to 3 August increased by 3%, 5.7% and 0.1% respectively in Europe, North America and its Asia Pacific region, like-for-likes edged down 0.8% in the UK.
Organic sales growth was particularly strong in North America at 13.7% compared to a 1.2% uplift in the UK.
The company said its gross margin for the quarter was 48.4%, down 30 basis points on last year, with the decline mainly seen in clothing and online.
Régis Schultz, chief executive of JD Sports Fashion, said: “I am pleased to report like-for-like sales growth of 2.4% and organic sales growth of 8.3% in the second quarter, demonstrating the strength and agility of our multi-brand model.
“In particular, we saw double-digit organic sales growth in North America and Europe, supported by the continued success of our JD store rollout programme.
“We completed the acquisition of Hibbett, Inc. just before the period end and we look forward to its contribution to the growth and development of our US business in the coming years.”
During the first half of its financial year, the company opened 85 new JD stores, which along with the Hibbett acquisition in the US and the ongoing disposal of non-core stores, meant it had 4,506 stores at the end of the period compared to 1,189 at the start of the year.
Looking ahead, Schulz said: “The global macro environment remains volatile and so we continue to be cautious on our outlook for the rest of the year.
“Notwithstanding this, based on our first half trading and allowing for an anticipated c.£15 million headwind at current exchange rates due to a stronger pound, we are maintaining our guidance range of profit before tax and adjusting items of £955 million to £1.035 billion on a pre-Hibbett basis.”
In May, JD Sports announced that revenue increased by 2.7% to £10.4 billion in the 52 weeks to 27 January. Pre-tax profit before adjusting items fell by 8% to £912.4 million after the company invested in its stores, people, systems and supply chain.
