JD Sports Fashion PLC (LSE:JD.) confirmed that profits fell 4% in the past year but that trading in the first quarter of its new financial year was in line with expectations and it foresees a "low" overall potential impact from US tariffs.
The retailer reported underlying profit before tax of £923 million for the 52 weeks to 1 February 2025, down 4% on the previous year or 2.9% lower on a constant currency basis. This was in the middle of its previously guided range of £915-935 million.
Revenues rose 10.2% to £11.46 billion, a 12.0% increase at constant currency, while organic sales were up 5.8% with like-for-like sales growth of 0.3% – all of which it had revealed in a trading update last month.
Statutory profit before tax was down 11.8% at £715 million, but operating cash flow after lease repayments rose 7.2% to £1.25 billion.
The company declared a final dividend of 0.67p, taking the total to 1p per share, up 11.1% on a year ago, with a £100 million share buyback programme also having been launched after the year-end.
CEO Régis Schultz said trading in the first quarter of the new financial year was, overall, "in line with our expectations in a volatile market".
Organic sales grew 3.1%, driven by a 5.1% contribution from new space, while LFL sales fell 2.0% and gross margin was in line with the prior period.
This reflecting a "disciplined commercial approach in what continues to be a volatile and promotional market, particularly online".
All regions achieved organic sales growth in the quarter, but on a LFL basis North America sales were down 5.5%, Europe and the UK were up 0.7% and 0.4%, while Asia Pacific was down 5.5%.
"Despite this volatility, and uncertainty surrounding the impact of US tariff changes," said Schultz, "we look forward into the medium term with confidence that we can continue to outperform the market, improve our profit margin and create significant value for our shareholders."