Following today’s release of JD Sports’ figures for the 26 weeks ending 29 July 2023; Pippa Stephens, senior apparel analyst at GlobalData, a leading data and analytics company, offers her view: “JD Sports’ latest results appear somewhat subdued compared to the heights it has experienced over the past couple of years, with group revenue growth softening to 8.3% in H1 FY2023/24, compared to 18.2% in FY2022/23, with revenue now at £4.8bn. However, on an organic basis, growth is in line at 12%, signalling that the retailer’s sportswear proposition remains favourable. JD Sports’ largest segment, Sports Fashion, increased by 8.9% on a reported basis, as the athleisure trend remains rampant and consumers continue to prioritise their health and wellbeing. Contrastingly, its Outdoor division fell by 1.0%, likely due to consumers’ preferences switching back to international travel over staycations. The group’s resilience has continued in the first seven weeks of Q3, with organic sales growth in line with expectations at 10%, and it still anticipates full year profit before tax and adjusted items to hit £1.04bn.
“The group’s Premium Sports Fashion division—which comprises 80% of its Sports Fashion revenue—was up 15% in organic terms in H1. The UK and Republic of Ireland only grew 7.6%, which will largely be down to it being most established in these countries, alongside inflation making shoppers more carefully consider their non-essential sportswear purchases, however it still outperformed the wider apparel market. Despite struggling in FY2022/23, when organic revenue rose by only 5%, North America saw a good recovery, growing by 15.4%, driven by better stock. The retailer outperformed in both the rest of Europe and Asia Pacific, increasing by 26.9% and 25.6% respectively, with the latter aided by the lifting of COVID-19 restrictions and Eastern Europe boosted by international expansion. 83 new JD Sports stores were opened globally during the period, with a plan to open a total of 200 throughout the year, with its focus on emerging markets like Central and Eastern Europe wise to ensure satisfying revenue growth.
“The group’s focus on M&A will also help to drive its performance going forwards. Though its acquisition of French sports retailer Courir is yet to be finalised, it presents an opportunity for JD Sports to significantly build up its reputation and visibility in France. With Courir also having strong expertise in women’s sportswear, the group can take some learnings for JD Sports, which tends to prioritise menswear more. With many of JD Sports’ brand partners like Nike and Under Armour having a strong focus on women in sport currently, an increased focus on womenswear is now particularly important to align with these brands’ priorities and keep relationships strong.”
