News & Analysis

What lockdown? What supply chain issue? JD Sports races to 5 year high

Andrew Saks, Tuesday, 14 September 2021

Whilst the workshy and the furloughed take root on their sofas and complain about supply chain issues, stock shortages, tax rises to pay for the government's sponsoring of their inactivity, and the increasing costs which have resulted from having disabled the national economy for almost a year and a half, the active are up and running, literally!

JD Sports Fashion PLC, known on every British high street as JD Sports, has reported its revenues for the first half of this financial year and they are up to such a high level that the stock market responded with a massive increase in value.

Today, JD Sports stock is up by a massive 9.15% over yesterday's values, reaching a five-year high at £11.47 per share.

That, by any stretch, is a massive achievement. JD Sports has demonstrated that not only are its customers active and fit, but so is its business acumen.

As an absolute breath of fresh air compared to the companies whose furloghed staff languish and whose shelves are empty, JD Sports achieved profit before tax and exceptional items of £439.5 million. That was up from £61.9 million a year earlier when retailers were hammered by lockdowns, but it was also higher than before the Covid-19 crisis, with £158.6 million recorded in the same period in 2019.

JD Sports, whose executive chairman is Peter Cowgill, said it expects pre-tax profits for the full year of at least £750 million, which far outstrips the £600 million that had been estimated by analysts.

Not only has the company been very much open for business to serve its fit and active customer base, JD Sports senior executives have been on the ball during the past year as the company has made a number of acquisitions which have helped boost its presence in the US, including the $495 million purchase of Baltimore-based shoe chain DTLR Villa.

An active mind and body are supposed to be two great things. JD Sports has proved this to be a wise adage, and added some shrewd business acumen to the mix too.

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