JD Sports’ performance not tainted by executive team overhaul, says GlobalData – Retail Times
Following today’s release of JD Sports’ figures for H1 FY2022/23; Pippa Stephens, apparel analyst at GlobalData, a leading data and analytics company, offers her view: “Despite undergoing a period of significant transition, with the shock exit of Peter Cowgill as CEO in May, followed by the appointment of new chief executive Régis Schultz and the long-awaited sale of Footasylum to Aurelius Group last month, JD Sports has boasted another set of extremely strong results, with group revenue rising by £532.3m to £4.4bn in H1 FY2022/23. Coming into the business while it is at such a high point will allow Schultz to have a smooth transition into his new role, as will the consultancy agreement with Cowgill announced yesterday. Having been at the helm of the company for 18 years, Cowgill will be an invaluable source of advice and information, aiding Schultz in continuing JD Sports’ impressive outperformance.
“JD Sports’ like-for-like sales increased by more than 25% on a three-year basis in H1 FY2022/23, highlighting the continued desirability of the retailer’s offering. Its outdoor fascias recorded the strongest year-on-year growth of 16.8%, owing to the ongoing popularity of staycations and outdoor activities, with particularly high demand for categories like cycling and fishing. Its largest segment, sports fashion, grew by 13.5%, highlighting the persistence of interest in sportswear following its huge uplift during the pandemic, especially now younger consumers are opting for more trend-led athleisure styles when out socialising. As a result of this strong H1 performance, alongside an 8% growth in the group’s organic retail businesses in the first six weeks of H2, which excludes subsidiaries which were not part of the group in the prior year, the group maintains its guidance that profit before tax and exceptional items for the full year will be in line with the record performance of FY2021/22.
“North America was the group’s weakest region in H1 FY2022/23, where revenue fell by 4.2%. Though this was primarily due to strong comparatives as a result of stimulus payments in the US during the prior year, it was also impacted by supply chain issues of key footwear styles. Since consumers often have a particular style of trainer in mind that they want to buy, they will have simply looked elsewhere if JD Sports did not have it in stock. However, now that global supply chain issues are gradually easing, sales in this region should hopefully pick up again in H2. While retailers across the UK & ROI and Europe have been experiencing tough trading as the surge in inflation rates drives consumers to focus spend on essential goods, JD Sports still recorded impressive growth of 19.8% and 26.9%, in each region respectively in H1. While the retailer’s sport specialism is still likely to make it more favourable than competitors going forwards, it will not be immune to the harsh macro-economic environment, which is expected to get even worse in the final quarter of 2022 and 2023, especially since any price increases will largely be dictated by its brand partners.”
Following today’s release of JD Sports’ figures for H1 FY2022/23; Pippa Stephens, apparel analyst at GlobalData, a leading data and analytics company, offers her view: “Despite undergoing a period of significant transition, with the shock exit of Peter Cowgill as CEO in May, followed by the appointment of new chief executive Régis Schultz and the…
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