Following today’s release of JD Sports’ figures for the 52 weeks ending 28 January 2023; Pippa Stephens, senior apparel analyst at GlobalData, a leading data and analytics company, offers her view: “JD Sports continued to experience exceptional growth in FY2022/23, with reported group revenue rising by 18.2% to £10.1bn, as its superior selection of brands and strong athleisure offering aided its desirability compared to competitors like Sports Direct and Dick’s Sporting Goods. Its organic sales at constant exchange rates, which excludes the impact of store openings and closures, COVID-19 restrictions in the comparative period, and acquisitions and disposals, also increased by 12%, despite consumers in its key markets continuing to grapple with inflationary pressures, highlighting the true strength of JD Sports’ proposition. This has accelerated to 15% growth in the first 13 weeks of FY2023/24, indicating that it is on track to gain further market share in 2023. Though the group’s statutory operating profit fell by 29.3% to £509.8m in FY2022/23, this was significantly dampened by its divestment of several brands including Missy Empire and Hairburst. Its operating profit excluding these adjustments rose by 4.6%, and these disposals will allow it to place greater focus on its core sports business and international growth going forwards.
“The group’s largest segment, Sports Fashion, grew in line with total revenue, at 18.8%, whereas the Outdoor fascias saw a softer rise of 9.9%. However, these fascias were still 36.3% above pre-pandemic levels as consumers continue to appreciate spending more time outside, with fishing, cycling and camping performing particularly positively. JD Sports outperformed internationally, driven by new store openings, relocations, and refurbishments, with North America and Europe’s reported revenues rising by 20.7% and 30.0% respectively. However, organic growth in Sports Fashion in North America grew by only 5%, hindered by the availability issues within footwear, which represents over 80% of its sales in the region. Europe’s Sports Fashion organic growth was strong at 34%, with its acquisition of Courir last week allowing it to maintain this strength going forwards due to its solid reputation as a go-to destination for trainers in France. Asia Pacific’s organic growth was also strong at 36%, whereas the UK and Republic of Ireland was in line with the total group at just 12%.”
