The JD Sports share price is up by 2.92% during the morning session on Monday
JD Sports has improved its profit outlook having reopened its UK shops, despite facing controversies over executive pay and the furlough scheme.
Having received more than £100m from the government as stores shut down due to the pandemic, Peter Cowgill, the chief of the online sports fashion brand, received around £6m in bonuses since February last year.
JD Sports has specifically seen an uplift in trading in Britain as restrictions have eased, while most of its stores across the world are now open.
However, the company is now facing pressure, as it outlined its positive outlook at its yearly shareholder meeting, despite Cowgill accepting a large bonus and having not yet paid back the furlough money.
JD Sports has said it used the money for its intended purpose and is analysing the recovery of the UK economy before fully committing to repay the government.
“In a world where doing the right thing has never been more important for companies on the stock market, JD Sports is pushing its luck when it comes to certain issues,” said Russ Mould, investment director at AJ Bell.
“The fact it still hasn’t repaid furlough support from the Government despite guiding for at least £550 million in profit this year is disgraceful. It’s even more of an insult that it is still biding its time to make a firm decision or not whether to give back the money.
“This is an incredibly successful business which is making significant amounts of money. The furlough scheme was put in place to support companies during dark times, but JD Sports is one of many businesses which have thrived with online sales during the pandemic,” Mould added.
“Therefore, it should really use money from online operations to support disruption to its store estate, not rely on Government hand-me-downs. Shareholders should be pushing for the company to pull up its socks and give that money back.”
