JD Sports Fashion shares rose 4.3% to 111.4p in late morning trading on Wednesday, following an increase in revenue to £8.5 billion in FY 2022 against £6.1 billion in FY 2021.
The retailer announced an operating profit climb to £721.2 million compared to £385 million, along with a pre-tax profit growth to £654.7 million from £324 million year-on-year.
JD Sports reported an alternative performance measure operating profit before exceptional items of £1 billion against £482.3 million in the previous year, and a record pre-tax profit before exceptional items of £947.2 million compared to £421.3 million, including £125.6 million in profit from JD Sports’ combination of acquisitions across the year.
The group further mentioned an EBITDA before exceptional items of £1.6 billion from £990.2 million the last year.
JD Sports Fashion reported strong performances across the UK, Republic and Ireland and North America, with the UK and ROI highlighting a pre-tax profit before exceptional items of £471.2 million compared to £262.7 million.
The firm noted high levels of digital sales retention in Q1 while stores were temporarily closed, combined with positive demand upon reopening of physical store locations.
JD Sports mentioned a North American pre-tax profit before exceptional items of £343 million against £171.9 million, including contributions of £57.3 million from Shoe Palace and £50.6 million from DTLR.
The firm said it successfully capitalised on the favourable trading conditions boosted by a second round of fiscal stimulus from the US Federal government.
Meanwhile, the group’s outdoor sector returned to profitability with a pre-tax profit before exceptional items of £25.9 million compared to a loss of £6.1 million the last year as a result of elevated holiday demand across the UK as summer kicked off.
The group also mentioned it paid off the support it received from the Coronavirus Job Retention Scheme in full at a total cost of £24.4 million.
“This was another period of outstanding progress with the Group delivering a record headline profit before tax and exceptional items of £947.2 million, more than double the previous record of £438.8 million set in the period to 1 February 2020, which was the last completed financial year prior to the COVID-19 pandemic,” said interim chair Helen Ashton.
“This result demonstrates our capacity for growth in both existing and new markets, and the strength of our global proposition and consumer engagement in store and online.”
The firm added that the volatile geopolitical backdrop would bring economic headwinds, however it confirmed expected headline pre-tax profits and exceptional items for FY 2023 to fall in line with its performance for FY 2022.
JD Sports reported a basic EPS of 7.1p from 4.6p and a total dividend per ordinary share of 0.3p compared to 0.2p the year before.