JD Sports has reported record revenue in the first half of the year after a pick-up in sales and the acquisition of American retailer Hibbett. Revenue at the retailer reached just over £5bn in the 26 weeks to 3 August 2024 , up by 5.2 per cent year on year.
Profit before tax rose by two per cent to £405m, while earnings per share rose 4.5 per cent to 5.15p.
Like-for-like sales growth in the first half of the year was 0.7 per cent, and underlying operating margins were in line with last year. Its gross margin fell by two per cent in a “volatile market”, JD said.
The pick-up in sales will be a relief for investors. JD Sports had downgraded its profit forecasts for the financial year in January due to higher discounting in its stores and reduced customer spend. Shares in the high street slumped after the downgrade, but have slowly recovered losses in recent months.
Shares in the retailer have risen more than 12 per cent in the past month. Earlier in 2024, JD Sports said it would pay £878m for Hibbett, an Alabama-headquartered ‘fashion inspired’ retailer with stores in 36 states across the States. The sale, which has now completed, will account for about 40 per cent of revenue in what is already JD Sport’s largest region by revenue.
Chief executive Régis Schultz has ambitious expansion plans for the American market, with around 700 new stores planned over the next four years. In a statement, Schultz said: “Our success is a direct reflection of the strength and ag.
