JD Sports saw yearly revenues spike 30% before lockdown

JD Sports saw yearly revenues spike 30% before lockdown

Sports and fashion brand JD Sports (LON:JD) booked robust financial performance for the full-year ended February 1 2020, with Coronavirus lockdown since ‘constraining’ the company’s progress.

In its full-year results, though, the company were pleased to book a 30% year-on-year revenue bounce, up from £4.7 billion to £6.1 billion, while like-for-like sales in Sports Fashion were up by 12%.

This progress translated into similar success across its balance sheet, with the Group’s earnings (EBITDA) up 28%, from £488.4 million, to £623.6 million, while reported profit before tax increased by 3% to £348.5 million.

The company also lauded the development of its JD Sports brand, with 52 new stores opening across mainland Europe, 18 across the Asia-Pacific territories and 11 new outlets across the US, including a new flagship store in Times Square.

Speaking on the results, company Executive Chairman Peter Cowgill stated:

“We were encouraged by the continued positive trading in the early weeks of the year prior to the emergence of COVID-19 and we firmly believe that we are well placed to regain our previous momentum. Looking longer term, there is inevitably considerable uncertainty as to what the effect of COVID-19 will be on consumer behaviour and footfall with future store investments highly dependent on rental realism and lease flexibility. Ultimately, however, we remain confident that we have a market leading multi-channel proposition which has the necessary flexibility and agility to prosper within a retail environment that may see profound and permanent structural change.”

On the pandemic and what it might mean for the company going forwards, he added that:

“Whilst COVID-19 has constrained our short term progress, it is important that we do not lose sight of the core retail standards and commercial disciplines which have underpinned our longer term growth to date. JD has a market leading multi-channel proposition which maximises its consumer relevance and reach by creating, and then maintaining, a deep emotional connection with its consumers who see JD as an authoritative and trustworthy source of style and fashion inspiration with influences drawn from both sport and music.”

Following the news, and after dipping initially, JD Sports shares rallied 0.62% or 4.20p, to 678.80p per share 07/07/20 12:30 BST. This price is up over 8% year-on-year, with the consensus target price sitting at 730.00p per share.

The company’s p/e ratio currently stands at 23.72, while its dividend yield sits at a modest 0.04%.