LONDON - JD Sports Fashion (LON:JD) Plc, a premier retailer of sports, fashion, and outdoor brands, has reported a modest revenue growth in its fourth quarter and provided guidance for the forthcoming fiscal year. The company's organic revenue increased by 5.8% in FY25, with a profit before tax and adjusting items that aligns with the previously forecasted range of £915-935 million.
The trading update for the 13 weeks leading to February 1, 2025, showed a like-for-like revenue growth of 0.3% and an organic revenue growth of 5.6%, attributed mainly to strong sales in Europe. Across the full year, the company maintained this 0.3% like-for-like growth, with North America, Europe, and Asia Pacific driving the organic revenue increase.
JD Sports' recent acquisitions, Hibbett and Courir, performed as expected during the quarter. Despite these acquisitions slightly lowering the year's gross margin to 47.8%, the company's store count rose to 4,850, an increase of 1,533 from the previous year's start. This expansion includes 1,485 stores acquired through Hibbett and Courir.
Looking ahead to FY26, JD Sports anticipates volatility in its key markets but expects trading to continue meeting their expectations. While the company has acknowledged the proposed changes to tariffs announced last week, it is yet to determine the potential impact on the sector. The company plans to grow total revenue in FY26, partly due to the acquisitions made in FY25, which are projected to contribute approximately 10% to the revenue, and through the opening of about 150 new stores and roughly 100 conversions or relocations. However, like-for-like revenues are predicted to fall short of FY25 levels.
JD Sports is preparing for additional operating expenses, including increased UK labor costs and a larger share of IT investment being treated as operating expenditure. The company aims to partially offset these costs through savings and efficiencies, as well as integration synergies following the Hibbett acquisition.
For FY26, the company expects its profit before tax and adjusting items to be consistent with current consensus expectations, which is £920 million, but has excluded any potential impact from tariff changes in this guidance. The planned capital expenditure for the year is around £500 million, and the company anticipates ending the year with net cash before lease liabilities, including a £100 million share buyback program.
This report is based on a press release statement from JD Sports Fashion Plc.
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