JD Sports has reported solid performance in its latest trading period, with like-for-like (LFL) sales up 2.4% and organic sales increasing by 8.3% on a constant currency basis.
This growth has led to first-half LFL sales rising by 0.7% and organic sales by 6.4%. The company attributes this quarter-on-quarter improvement to its multi-brand operating model and softer comparatives with the previous year.
Geographically, North America and Europe showed the strongest LFL growth at 5.7% and 3.0% respectively, while the UK market saw significant improvement compared to the previous quarter. Organic growth was achieved across all regions, with North America leading at 13.7%.
Despite what the company called a ‘volatile market’, JD maintained good promotional discipline and proactive inventory management to support gross margins. The group’s gross margin for the period was 48.4%, slightly down by 30 basis points from the previous year, with the UK experiencing the most impact due to higher online penetration.
The company recently completed the acquisition of Hibbett, Inc., adding 1,179 stores to its portfolio and strengthening its presence in the US market. This acquisition is expected to enhance the company’s brand relationships and provide a platform for growth in North America.
Investors will be encouraged JD Sports is maintaining its guidance range for profit before tax and adjusting items at £955m to £1,035m, on a pre-Hibbett basis. This forecast takes into account an anticipated £15m headwind due to a stronger pound at current exchange rates.
JD Sports has previously set themselves a target of £1bn profit before tax, which they are yet to meet, albeit by very narrow margins. Shareholders will hope 2025 is the year they overcome the barrier, or it will mean another year of flat growth.
“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,” said Régis Schultz, CEO of JD Sports Fashion.
“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. Based on our first-half trading, we remain on track to deliver profit within our full-year guidance.”