JD Sports Fashion PLC said half-year profits came in at the top end of its expectations and said it expects to achieve its full-year guidance despite the challenging macro-environment.
Profit before tax and exceptional items amounted to £383.5mln in the six months to July 31 2022, down from £439.5mln in the same period last year, when its businesses in the US saw a significant one-off boost from the fiscal stimulus made available by the federal government, the FTSE 100 fashion retailer said in its earnings release.
“With this year expected to follow a more normalised trading pattern, this result is at the top end of our expectations for the first half demonstrating the ongoing resilience of our global proposition and the strength of our consumer engagement,” said non-executive chair Andrew Higginson.
JD said it remains “cautious” about trading in the second half, with macro-economic uncertainty, inflationary pressures and the potential for further disruption to the supply chain with industrial action all concerns.
Despite this, it still expects to achieve a full-year figure in line with last year’s record performance, when it recorded a profit before tax and exceptional items of £947.2mln.
Additionally, it is taking proactive steps to mitigate cost pressures, such as maximising hours in stores and warehouses, improving energy efficiency and delivering savings on consumable items.
Higginson said first-half results reassured the board that the transitional period, which saw Peter Cowgill replaced by Peter Schultz as CEO, did not impact the financial performance of the group.
Revenue was up to £4.4bn from £3.8bn, while sales in the second half so far ahead by 8% compared to last year.
JD said it continued to expand its international business, with stores opened across Europe, the US, Indonesia, and Israel.