JD Sports Fashion shares experienced a decline in value on Wednesday as the company released its full-year results. The company predicts that its profits will exceed £1 billion, marking a new high for the company. Despite a 5% rise in profit before tax in 2023 to £991.4 million, the gross profit margin fell from 49.1% to 47.8%. This was due to a return to normalised levels of North American inventories and a resumption of promotional activity.
JD Sports experienced an 18% rise in sales to £10.1 billion in the 12 months to January with a 12% increase in organic sales year over year. The company is anticipating that pre-tax profits will exceed £1 billion in 2024. The demand for leisurewear among consumers in the post-pandemic environment has bolstered the company’s performance.
JD Sports plans to open between 250 to 350 stores per year, increasing its presence in Europe, Asia, and North America. The company began talks to acquire French sportswear chain Coolir to expand its European footprint. The company’s full-year results have been deemed resilient amidst a difficult financial environment. The company’s strong store base and brand recognition give it an edge in a difficult market.