The JD Sports Fashion PLC (LON: JD) share price rallied 8.19% after releasing its interim results for the 26 weeks to 29 July 2023. The company generated group revenues worth £4,783.9 million, marking an 8% improvement, translating into 12% on an organic basis, reflecting the impact of the divestment of non-core UK assets
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The fashion company recorded a 15% organic growth, or 9% like-for-like (LFL) sales growth, with additional market share gains in key regions. The company’s gross margins remained robust at 48% and were well above pre-pandemic levels. The first half of 2023 had a more normal promotional environment.
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JD Sports noted that its North American premium sports fashion fascias generated strong performance by reporting organic growth of 15%, with LFL growth of 9% and EBIT of up to 12%. The group reported a pre-tax profit of £375.2 million, reflecting a more normal H1 contribution of c.35%, investment in its people, systems and supply chain.
The company had a net cash of £1,276.5 million on its balance sheet, marking £263.4 million compared to a similar period last year. The company managed its inventory levels well and aligned with sales growth expectations. The fashion firm also increased its interim dividend, returning to the pre-pandemic dividend cover.
Régis Schultz, the CEO of JD Sports Fashion Plc, said: “We have delivered a strong first half to our financial period with organic sales growth of 12% and profit on track for the full year. In line with our strategic plan, growth is being driven by our premium Sports Fashion business with an impressive performance in Europe (+27%) and North America (+15%), supported by a strong performance in our more mature UK market (+8%). This performance continued in the important back-to-school period.”
“We have made good progress delivering on our strategic pillars, focusing on expanding the JD brand and we will open more than 200 JD stores worldwide in this financial period. We are going to accelerate JD brand growth in Europe through purchasing the non-controlling interest in both ISRG and MIG, and the acquisition of GAP stores in France.”
JD Sports share price.
The JD Sports share price rallied 8.19% to trade at 144.47p, from Wednesday’s closing price of 133.53p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.