REG - JD Sports Fashion - JD SPORTS FASHION PLC FY25 RESULTS
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RNS Number : 5652J JD Sports Fashion PLC 21 May 2025
21 May 2025
JD SPORTS FASHION PLC
FY25 RESULTS
FOR THE 52 WEEKS TO 1 FEBRUARY 2025
RESILIENT PERFORMANCE AND CONTINUED STRONG CASH GENERATION
JD Sports Fashion Plc (the 'Group'), the leading global retailer of sports,
fashion and outdoor brands, today announces its full year results for the 52
weeks ended 1 February 2025 (the 'period').
Commenting on the results, Régis Schultz, Chief Executive Officer of JD
Sports Fashion Plc, said:
"We increased Group revenue on a constant currency basis* by 12% with organic
sales growth* of c.6%, more than double the market growth, thanks to our
strong and agile, multi-brand model. We delivered a 48% gross margin,
excluding the impact of acquisitions*, which was in line with the previous
period due to our full price commercial strategy and strong trading discipline
in a promotional market. We concluded two important acquisitions in our key
strategic markets - Hibbett in the US and Courir in Europe - while we
continued to invest in our infrastructure and controls environment. In
constant currency, our operating profit* was ahead of last year and our
operating cashflow was over £1.2bn, demonstrating our strong cash generation.
We achieved Profit before tax and adjusting items* of £923m, in line with our
January guidance.
"In April, we announced we were adapting our strategy to reflect slower
anticipated market growth and an increased focus on profitability, leveraging
the investments we have made to support our growth in the key markets of North
America and Europe, delivering strong cash generation and improving returns to
our shareholders.
"Our focus on increasing shareholder returns is demonstrated by paying FY25
dividends of £52m, up 11% on the previous period, and after the period end,
the commencement of a £100m share buyback programme.
"Overall trading in the first quarter of the new financial year has been in
line with our expectations in a volatile market. Despite this volatility, and
uncertainty surrounding the impact of US tariff changes, we look forward into
the medium term with confidence that we can continue to outperform the market,
improve our profit margin and create significant value for our shareholders."
Performance summary
£m 52w to 1 Feb 2025 52w to 27 Jan 2024 restated((1)) Change Constant currency change
(unaudited) (52 v 52) (52 v 52)
Revenue 11,458 10,397 10.2% 12.0%
Gross margin before adjusting items* 47.8% 48.0% (20)bps (20)bps
Operating profit before adjusting items after interest on lease liabilities* 937 940 (0.3)% 0.8%
Operating margin before adjusting items after interest on lease liabilities* 8.2% 9.0% (80)bps (90)bps
Profit before tax and adjusting items* 923 961 (4.0)% (2.9)%
53w to 3 Feb 2024 restated Change (52 v 53)
Adjusted basic earnings per share* (p) 12.39 12.81 (3.3)%
Operating cashflow net of lease repayments* 1,245 1,161 7.2%
Net cash before lease liabilities* at period end 52 1,032 (980)
(1) Explanations for restating FY24 numbers can be found in note 4 to the
Consolidated Financial Statements
Statutory/£m 52w to 1 Feb 2025 53w to 3 Feb 2024 Change (52v53)
Revenue 11,458 10,542 8.7%
Operating profit 903 927 (2.6)%
Net finance expense (188) (116) 62.1%
Profit before tax 715 811 (11.8)%
Basic earnings per share (p) 9.50 10.45 (9.1)%
Dividend per share (p) 1.00 0.90 11.1%
Throughout this release,'*' indicates the use of Alternative Performance
Measures. Please refer to pages 41 to 47 for the further information including
reconciliations to statutory measures.
Financial highlights
· Organic sales growth* of 5.8% and like-for-like (LFL) sales
growth* of 0.3%
· Constant currency revenue growth* of 12.0% to £11,458m
· Gross margin* of 47.8%, down slightly on the prior period
reflecting the acquisitions of lower margin Hibbett and Courir
· Constant currency Operating profit before adjusting items after
interest on lease liabilities* up 0.8%
· Profit before tax and adjusting items* of £923m, down 4.0%, due
largely to the continued investment in infrastructure, controls and security
· Profit before tax of £715m, down 11.8% due partly to an increase
of £53m in adjusting items*
· Adjusted basic earnings per share* down 3.3% to 12.39p
· Basic earnings per share down 9.1% to 9.50p
· Operating cashflow net of lease repayments* of £1,245m driving
net cash before lease liabilities* of £52m
· Proposed final dividend of 0.67p; total proposed dividend up
11.1% to 1.00p
· Q126 trading in line with expectations
Strategic highlights
· JD Brand First
o JD store openings delivering payback of less than three years
o Launched franchise partnerships in South Africa and Indonesia, and the
Philippines after year end
· Complementary Concepts
o Completed strategically important acquisitions of Hibbett, Inc. and
Courir, extending our 'Reach' in the key growth markets of North America and
Europe
· Beyond Physical Retail
o Continuing to implement our global supply chain strategy
o Over 8m active JD STATUS members
o Improved controls and security environment
· People, Partners & Communities
o Record employee engagement
o Included in the Carbon Disclosure Project Climate A list
· After the year end, we updated our medium-term-plan to increase
focus on profitability and improved shareholder returns
Enquiries:
JD Sports Fashion
Plc
Tel: 0161 767 1000
Régis Schultz, Chief Executive Officer
Dominic Platt, Chief Financial Officer
Mark Blythman, Director of Investor Relations
Advisors
Bank of America - Antonia
Rowan
Tel: 0207 628 1000
Peel Hunt LLP - Dan
Webster
Tel: 0207 418 8869
FGS Global - Rollo Head, Jenny Davey, James
Thompson
Tel: 0207 251 3801
Cautionary note regarding forward-looking statements
This announcement contains certain forward-looking statements relating to
expected or anticipated results, performance or events. Such statements are
subject to normal risks associated with the uncertainties in our business,
supply chain and consumer demand along with risks associated with
macro-economic, political and social factors in the markets in which we
operate. Whilst we believe that the expectations reflected herein are
reasonable based on the information we have as at the date of this
announcement, actual outcomes may vary significantly owing to factors outside
the control of the Group, such as cost of materials or demand for our
products, or within our control such as our investment decisions, allocation
of resources or changes to our plans or strategy. The Group expressly
disclaims any obligation to revise forward-looking statements made in this or
other announcements to reflect changes in our expectations or circumstances.
No reliance may be placed on the forward-looking statements contained within
this announcement.
Analyst and investor Q&A
We will be hosting an invite-only event for institutional investors and
analysts at 0830 BST on 21 May 2025 with CEO Régis Schultz and CFO Dominic
Platt. The presentation will be held at Peel Hunt, 100 Liverpool Street,
London, EC2M 2AT.
To register for the live webcast of this event, please visit the following
link:
https://app.webinar.net/qRdaD7wD7xe (https://app.webinar.net/qRdaD7wD7xe)
If you are unable to attend in person and wish to ask questions, please visit
the following link: https://registrations.events/direct/Q4I812121497
(https://registrations.events/direct/Q4I812121497)
For those unable to attend in real time, either in person or virtually, the
presentation will be made available directly following the live presentation
on the Investor Relations section of the JD PLC
website:www.jdplc.com/investor-relations/results-centre
Financial calendar
2 July 2025: AGM
August 2025: Q226 trading update
September 2025: H126 results
November 2025: Q326 trading update
About JD Sports Fashion plc
Founded in 1981, the JD Group ('JD') is a leading global omnichannel retailer
of Sports Fashion brands. JD provides customers with the latest sports fashion
through working with established and new brands to deliver products that our
customers most want, across both footwear and apparel. The vision of JD is to
inspire the emerging generation of consumers through a connection to the
universal culture of sport, music and fashion. JD focuses on four strategic
pillars: JD Brand First, first priority, first in the world; leveraging
Complementary Concepts to support JD Group global expansion; moving Beyond
Physical Retail by building the right infrastructure and creating a lifestyle
ecosystem of relevant products and services; and doing the best for its
People, Partners and Communities. JD is a constituent of the FTSE 100 index
and had 4,871 stores worldwide at 3 May 2025.
Chief Executive Officer's Review
JD has been moving at a fast pace over the last two years, investing in both
our organic and inorganic growth to build further on our position as
a leading global sports fashion powerhouse and developing our people and
leadership, our infrastructure and cyber security and our governance and
controls environment to ensure we have strong foundations for the future.
At the same time, the market has evolved and it is now the time for us to move
to the next phase of our strategy by adapting our plan to focus on organic
growth and on profit, leveraging the last two years' investments to improve
returns to our shareholders.
In early 2023, we set out our strategic plan under four pillars (JD First,
Complementary Concepts, Beyond Physical Retail and People, Partners &
Communities). JD Brand First is our commitment to putting JD at the forefront
of premium sports fashion, ensuring that we are the first choice for consumers
around the globe. It is the number one priority for the Group. Complementary
Concepts is about broadening our reach across customers, geographies and
categories, and contributing to our growing scale. Beyond Physical Retail is
our investment in infrastructure and digital transformation to support our
long-term growth. And last, but most importantly, People, Partners &
Communities, which reflects our commitment to our people, to our partners and
to the communities in which we operate and ensuring we have a fit for purpose
governance and control environment.
We also set out three financial objectives, which we referred to as the
"triple double" - double-digit revenue growth, double-digit profit margin and
double-digit market shares.
Reflecting on successes and challenges
Before we shift our focus to the future, I would like to reflect on the
significant progress we have made, the many successes we have achieved, as
well as a number of challenges that we have faced, over the past two years.
· JD First. The JD brand now has a consistent customer proposition
across the world, leveraging our products, merchandising, marketing expertise
and retail excellence. We prioritised accelerating our store opening and
conversion programme to capture a larger share of the market, setting out an
ambitious target to open at least 200 new JD fascia stores per year, including
conversions, with a disciplined approach and a three year payback hurdle. We
have delivered this with 468 stores opened, including 62 Finish Line
conversions, and the vast majority achieving the hurdle rate.
· Complementary Concepts. In FY24, we simplified the Group with the
divestment of around 30 non-strategic businesses and the acquisition of the
minority interests in ISRG and MIG. In FY25, we completed the two
strategically important acquisitions of Hibbett in the US and Courir
in Europe.
· Beyond Physical Retail. We expanded our loyalty programme, JD
STATUS, from the US into the UK, Ireland, France and Eastern Europe with more
than eight million active accounts, and we have a developing omnichannel
model which will provide profitable opportunities going forward. We are also
improving our customer fulfilment through opening three major distribution
centres (DCs), one in each of our core geographies, in the last 12 months.
· People, Partners & Communities. We aim to be the best for
our people with developments including launching a global engagement survey
and rolling out new systems to help unite our people across all territories,
including a new global app-based colleague communications platform, 'JD NOW'.
We expanded our community impact this year, including launching the JD UP
programme, which has an exciting opportunity for a wider, international
rollout, and improving our ESG performance, which is an integral part of our
Group strategy.
We have also faced some challenges along the way.
· Market growth. The global sportswear market continues to grow,
but at a slower pace than we have seen in recent years. This has resulted in
lower than anticipated like-for-like (LFL) sales growth*. At the same time, we
have continued to invest in our long-term growth and in strengthening our
infrastructure. This combination has had an impact on our profitability over
the last two years, with effects differing by region. For example, across
Europe where we have seen great success in the south but Germany has been more
challenging, due largely to structurally higher people costs and a lower
consumer appetite for sports fashion.
· Investment in infrastructure and people. A key priority for us
was a need to upgrade the infrastructure, capability, governance and control
environment to be fit for purpose for a group of JD's scale and reach. The
programmes to address these areas have taken longer, and cost more, than we
anticipated originally. The European DC project in Heerlen has been delayed by
a year leading to increased costs. On this project, we have changed the
leadership and I am pleased to say we are now back on track. In addition, we
have spent around £60m to secure and improve the resilience of our IT
infrastructure and back-office systems. We have started the programme to put
in place IT general controls, build a cyber security function and upgrade
outdated or non-supported legacy systems. As these are accounted for
increasingly as operating expenditure rather than capital expenditure, these
investments result in a higher short-term impact on our P&L. We have also
developed our Head Office functions and have seen general wage inflation,
especially as minimum wages defined by laws have increased significantly
across most of the markets we operate in. This, and our decision to remove age
banding, has resulted in an additional people cost of more than £100m over
the last two years. These investments are the right choices for the long-term
health of the business.
· M&A. We are excited by the opportunities from our recent
acquisition of Courir, but the length of time it took to get European
Commission clearance, the added cost that this brought and the scale of the
remedies to secure clearance have held us back.
Updated strategic framework and financial targets
As announced after our period end in April 2025, we are now moving into the
next phase of our medium-term plan, within which we will take actions to
improve shareholder returns. We are refining our growth strategy to take into
account the slower market growth, the achievements of the last two years and
the lessons learned.
· In North America, we already have a scale business but there
remains a significant growth opportunity. We will increase revenue and profit
by growing space for the JD fascia, optimising our Complementary Concepts and
delivering both supply chain and back-office synergies.
· In Europe, we are refining our approach and building on areas
where we have seen success. Our plan is to grow revenue and improve the
operating margin to high single-digits. Having completed the Courir
acquisition, we will leverage its strong position in France and use JD's
strong position in Spain and Italy to accelerate the expansion of Courir in
those markets. We will also reduce costs and improve efficiencies in the
supply chain to drive margin improvement in Europe. We are now very well
positioned to develop our market share and our profit. In the UK, which is a
maturing market as well as our most established market, our focus will be on
productivity. We have a market-leading concept and a good store estate with
almost all stores providing a positive contribution. However, it is important
we continue to invest and manage our space and locations to maintain that
leadership, ensuring a consistent customer experience and optimising
productivity across the estate. We will also invest to support continued
growth in our profitable and highly successful gyms business.
· In the rest of the world, our strategy is to grow the JD fascia,
which will be expanded mainly via our capital-light franchise model.
We are also focused on leveraging our investments in our infrastructure and
controls to deliver efficiencies. We have opened three new DCs in the last 12
months. In Europe, Heerlen will soon begin to deliver the desired benefits as
the project is back on track and expected to deliver automated store orders
for the FY26 peak and then for online orders in FY27. In the US, Morgan Hill
will become our first multibrand DC in North America by the end of this
financial year. This will unlock improvements in the speed to market for our
west coast stores and give us the blueprint to move our other North American
DCs in the US to multi fascia operations. This will deliver efficiencies and
increase capacity for the future. In addition, we have opened a major
automated DC in Australia to increase capacity to support our growth.
On digital, we are nearing the end of a two-year investment to replatform our
omnichannel businesses. We will be live in the US before the end of 2025, with
the UK and European markets to follow. In both cases, we are incurring
significant double-running costs and constraints in delivering a full
omnichannel experience to our customers.
We are also working on opportunities for efficiencies at our Head Offices in
the UK and in Europe, as well as post-acquisition synergies across the
back-office functions in North America.
Overall, we have adapted our strategy with the updated framework and regional
priorities driving our capital allocation to support the key areas of growth
and improving our profitability. This will see 70% of our capital expenditure
directed to North America and Europe with the balance spread across the rest
of the Group.
In terms of financial targets, over the medium term we will grow our organic
revenue* ahead of the market, which we estimate to be around 2-3% per annum,
led by our investment in space growth - the contribution from space growth*
should settle at around 3-4% of revenue in the medium term as our capex
becomes more targeted and the LFL base grows larger.
Beyond FY26, we will start to leverage the investments we have made in our
people and our infrastructure, and drive efficiencies throughout the Group.
Accordingly, over the medium term, we aim to deliver profit growth ahead of
revenue growth.
Finally, we will focus on continuing to build our strong cash generation
through a more disciplined approach to capital allocation via a more focused
store investment programme and lower supply chain investment now that the
major infrastructure investment programmes are behind us, and using a
capital-light franchise model to expand outside our existing markets. As a
result, we will start to improve our return on capital and enhance our returns
to shareholders.
Review of FY25 performance
Turning to our performance in the 52 weeks to 1 February 2025, we achieved
revenue of £11,458m, 10.2% up on the comparative 52-week period*, in
what was again a volatile market. In constant currency, revenue growth* was
12.0%. LFL sales growth* was 0.3% and there was a 5.5% benefit from new
stores, leading to organic sales growth* of 5.8%. This organic sales growth*
exceeded estimated market value growth of 3.8% in 2024, meaning we again
outperformed the market organically. A key element to our ability to
outperform the market consistently is the strength and agility of our
multibrand model. We have a consistent focus on offering our customers the
brands and products that they want, which means we need to move quickly at all
times to adapt to changes in fashion.
We are a highly cash generative business with £1.2bn of operating cashflow
net of lease repayments*. At the end of the period, we had net cash before
lease liabilities* on our balance sheet of £52m and, during the year, we
spent £1.4bn on the acquisitions of Hibbett and Courir, including repayment
of debt acquired.
Region
From a geographical point of view, all regions grew revenue* in the period
other than the UK, which was impacted principally by non-core divestments
made over the last two years. The UK declined 4.1% to £3,205m. Europe
revenue* increased 9.5% to £3,510m, including two months of Courir. North
America revenue* increased 27% to £4,242m including six months of Hibbett.
Asia Pacific revenue* increased 0.4% to £501m, as the exit of non-core
businesses in the year reduced revenue by £30m (c.6%). Growth in our newer
markets resulted in a better business balance geographically with North
America generating 37% of revenue*, Europe 31%, the UK 28% and Asia Pacific
4%.
Channel
Our retail stores grew revenue* by 15.7% to £9,081m with our online channel
declining by 2.9% to £2,251m, reflecting the continued shift back to
pre-pandemic online participation, our focus on online profitability and our
investment in stores. As a result, stores now represent 79% of our revenue and
online is 20%, with other, mainly gym memberships, at 1%. With our focus on
customer satisfaction, we are consciously channel agnostic, facilitating
the flexibility we need to meet customers' individual purchasing
requirements, whether it be buying in store, buying online and delivered to
home, or buying online and delivered to store.
Category
Footwear continued to perform strongly with revenue* growth of 15.2% to
£6,819m, while apparel revenue grew 4.2% to £3,550m, driven primarily by our
acquisitions being mostly footwear-focused. Accessories revenue grew by 4.8%
to £702m. This means we continue to build a good mix of products delivering
a 'head-to-toe' shopping opportunity with footwear at 60%, apparel at 31% and
accessories at 6% of revenue. Other is 3% and includes outdoor living
equipment and gym memberships.
Store numbers
We ended the period with 4,850 stores worldwide, 1,533 more than at the start
of the period, due mainly to the acquisitions of Hibbett and Courir, which
added 1,485 stores. Across all fascias, 311 stores were opened and 263 stores
were closed, including 66 from Finish Line and Macy's as we continued to
rationalise our store portfolio. We also converted 29 stores to JD from Finish
Line in the US and a further 21 to JD from other European fascias.
Overview of progress under the four pillars
JD Brand First
We continue to strengthen the JD brand globally. We have a consistent,
worldwide, customer proposition and strong brand partnerships, capitalising on
our products, merchandising, marketing expertise and retail execution
excellence. Our Christmas campaign was one of our most successful ever and,
more recently, we launched our new, exciting JD campaign, 'Forever Forward'.
We have continued to grow the JD store footprint across the globe with a
particular focus on North America and Europe. We follow a disciplined
approach to capital investment and, outside of a few strategic investments
such as flagship stores, each new store must be able to payback investment in
under three years. We finished the year with 1,475 JD fascia stores. In total,
we added net 223 new JD stores, constituting 203 new JD fascia stores and
49 conversions from other brands, across Finish Line in the US and ISRG and
MIG in Europe, offset partly by a small number of store closures.
The good momentum continued in North America where we converted 29 Finish
Line stores to the JD fascia and we opened a further 75 new JD stores across
both the US and Canada. We also closed 69 stores, of which the majority were
Finish Line as we continued to rationalise our store portfolio. We are now
over half way through the Finish Line to JD conversion programme and we are
working on plans to accelerate the completion of this programme.
In Europe, we opened 99 new JD stores across a number of European cities,
including in Paris, where we opened our new flagship store on the Champs
Élysées. We also converted a further 21 stores from the ISRG and MIG
businesses to JD.
In the UK, the main strategic focus continues to be on improving locations or
store size in existing cities and towns. During the period, we opened 17 new
stores and closed 14, thereby growing our store portfolio by a net three
stores. Highlights included the opening of our new flagship store at Stratford
in London, Bluewater in Kent and also in Leeds.
In Asia Pacific, we opened 14 new JD stores. We opened new stores in Canberra
and Darwin, and are now in every Australian state, as well as opening a new
store in Wellington, New Zealand. We also completed the sale of our Indonesia
joint venture to our partner to facilitate the start of a franchise agreement
with them in this market.
To grow the JD brand outside of our strategic markets, we have made great
strides in continuing to develop our franchise model. The advantages of this
model include collaborating with our selected partners to leverage their local
knowledge and relationships, while also benefiting from low capital
expenditure requirements. We currently operate JD stores through three
franchising agreements covering the Middle East, South Africa and Indonesia.
In March 2025, we were pleased to finalise an agreement with our selected
partner for the Philippines and we remain committed to exploring further
opportunities.
Complementary Concepts
Our focus within this pillar has been growing our community brands within
North America, working towards the successful acquisition of Courir to develop
a new, complementary sports fashion offer in Europe, optimising the
profitability of ISRG and MIG businesses within Europe, and divesting non-core
businesses. I am delighted to report strong progress across all these areas.
We completed two significant acquisitions during the period.
The Hibbett acquisition completed in July 2024 and brought with it 1,179
stores across its Hibbett and City Gear retail fascias. Hibbett provides an
enhanced platform for the mall-led, nationwide growth of the JD brand in North
America, and with its efficient supply chain and strong back office, we expect
cost synergies of at least $25 million over the medium term across our North
American business.
As a result, we now operate six fascias in North America: JD, Hibbett, Finish
Line, Shoe Palace, City Gear, and DTLR and together we have a comprehensive
geographic and customer coverage. We segment these fascias into 'Mass',
'Reach', and 'Focus'.
· 'Mass' is aligned to JD Brand First. The US JD customer is
the same young customer as everywhere else in the world. Our JD stores
operate mainly in key 'A' and 'B' malls.
· 'Reach' is a convenient local format expanding our reach
into underserved markets and rural areas. It primarily includes Hibbett but
it does also include the Finish Line corners in Macy's which extends our reach
to an older, more female customer in North America.
· 'Focus' is our city specialists - great community stores
in urban areas. They are mostly street mall venues with some presence in
covered malls. They are fully complementary on a geographical basis. This
currently includes Shoe Palace, DTLR and City Gear. Going forward, we have
taken the decision to rationalise our portfolio and will convert most of the
City Gear stores to DTLR, with a limited number of stores converted to Shoe
Palace. we have
The Courir acquisition completed in November 2024 and brought with it 306
stores across six European countries including its home market in France, as
well as 35 franchise stores across nine further countries. This acquisition
gives us great insights into, and exposure to an older, more female customer
in Europe.
Together these acquisitions added 1,485 new stores and we welcomed over 16,000
new colleagues.
Alongside these pivotal acquisitions, we made good progress with our European
businesses. We worked closely with the management teams of ISRG and MIG to
optimise the roll-out of JD with store conversions to JD as well as working on
integration and sharing Group best practices to improve profitability. We also
simplified the group structure with the purchase of minority shareholdings in
DTLR and JD Canary Islands, and divesting shareholdings from a further three
non-core businesses: Bodytone, Total Swimming and Gym King. We also saw one of
our non-core assets, Applied Nutrition, achieve a successful IPO, listing on
the London Stock Exchange in October 2024. This resulted in selling down
21.58% of our shareholding and generated a notable return on our original
investment. We have retained 9.78% of our shareholding. Going forward, in
Europe it is now a case of 'refining' our approach and capitalising on the
great success we have seen to date in the region.
Beyond Physical Retail
We are channel agnostic, aiming to offer our customers the right products, at
the right time, in the right place for them. To do this, we have ongoing
programmes to support our 'Beyond Physical Retail' strategic pillar. Our focus
continues to be on five key priorities: re‑platforming our websites;
strengthening our cyber security; executing our omnichannel proposition
further; developing our loyalty programme; and improving the efficiency and
effectiveness of our supply chain.
On digital, we are making strong progress on our investment to re-platform
our websites. The US will be our first go-live this coming year, with the UK
and European markets to follow.
We have rolled out our successful US loyalty programme, JD STATUS, into the
UK, Ireland, France and Eastern Europe with more than eight million active
accounts globally. This serves as the foundation for developing closer, more
targeted, personalised and valuable relationships with our customers.
We continue to make progress on our UK/European supply chain optimisation with
the Heerlen DC in the Netherlands opening manually for selected brand partners
and own brands. Unfortunately, this is not the original milestone we had hoped
to hit as the project has seen delays and increased cost. To rectify this, we
hired a very respected and experienced leader, Wim van Aalst, to oversee our
global supply chain operations. The Heerlen project now has a clear way
forward. In addition, we have opened a major automated DC in Australia to
increase capacity significantly in that market. In the US, our Morgan Hill
distribution centre will become our first multi fascia distribution centre in
North America by the end of FY26.
We have developed our 'ship from store' capability to shorten our lead times
in Europe and reduced our fixed costs with the closure of the Derby DC in the
UK.
Overall, our ongoing efforts to develop our omnichannel proposition, a
disciplined commercial policy and the optimisation of our digital marketing
spend has resulted in a significant improvement in the profitability of our
online business.
People, Partners & Communities
The expertise, dedication, professionalism and passion of our people are the
foundation of our success. We are committed to supporting our colleagues by
providing ongoing opportunities to further their careers and achieve their
ambitions. To this end, we continue to improve our people systems
functionality, developing our key partner programmes and creating lasting
impact to the communities where we operate.
Our people are at the heart of our business and investing in them is a key
priority. As well as positive actions like removing age bandings in the
previous financial year, we are rolling out new systems to help unite our
people across all territories. For example, this year we designed and built a
new global communications app, "JD Now", to connect our colleagues across all
territories and engage with the large young demographic in our workforce, and
I'm pleased that this went live in early 2025. Our new global Human Resources
Information System will ensure a more seamless HR experience for our people
and is being rolled out through 2025.
Mental health is one of the biggest challenges facing the world today. Our
leadership team, including myself, have committed to creating a culture of
openness, where colleagues can talk freely and easily about mental health and
receive the support they need. We continue to support all colleagues in our
workforce by focusing on development pathways. For example, the Retail
Roadmap contains 10 specifically designed programmes to enable personal and
professional growth, improving colleague social mobility to help them build a
future within the business. We supported colleagues through the Diversity in
Retail "Ethnic Future Leaders Programme", giving them the chance to be
mentored by a senior leadership team member. As a mentor, it's been great to
witness and it reaffirms to me the strategic value of investing in our
colleagues and nurturing our future leaders.
Also critical to our success are the strong and profitable relationships we
have with our global brand partners, driven by our brand presentation in
store, our protection of brand equity through a high full price mix and our
global scale.
We expanded our positive community impact this year reflecting the dedication
of our colleagues and our customers' support via the JD Foundation and JD
Finish Line Foundation, aiming to be the best partner for the communities
where we operate.
The JD Foundation and JD Finish Line Foundation donated more than £4.5m to
over 200 community projects. The JD Foundation strategy is evolving to focus
on social mobility, building stronger youth communities and transforming young
people's lives through opportunities, engagement and social change.
Improving ESG performance is an integral part of our Group strategy. As a FTSE
100 Company, we recognise that our scale enables us to make positive, lasting
changes. We are very proud of our ongoing climate achievements which include
achieving 'A List' status with the Carbon Disclosure Project (CDP). This
recognition places us among a select group of companies leading in
environmental transparency and performance. It reflects our commitment to
meaningful climate action and the responsibility we have as a global business.
Further to this, we have achieved a 'B' grade for CDP Water Security,
sourcing 99% of cotton for our private label products via the 'Better Cotton'
initiative and retaining our 'Zero Waste to Landfill' accreditation at our
largest UK and European DC and office locations.
Summary
As we move into the next phase of our medium-term plan, we are adapting to
slower market growth with a refined organic growth strategy and a clear focus
on performance and delivering efficiency gains from our past investments.
Our strong and agile multi-brand global model is well suited to the current
environment and we have demonstrated our ability to navigate short term
headwinds.
We are well positioned to outperform in North America and Europe where we see
the largest growth opportunities, leveraging our different propositions.
Overall, we are disciplined and focused on delivering strong cash generation
to enable an improvement in our shareholder returns.
Q126 trading update and outlook
Overall, trading in the 13 weeks to 3 May 2025 was in line with our
expectations.
Organic sales growth* was 3.1%, driven by a 5.1% contribution from new space.
LFL sales* were down 2.0% and gross margin was in line with the prior
period, both reflecting our disciplined commercial approach in what continues
to be a volatile and promotional market, particularly online.
All regions achieved organic sales growth* in the quarter. In line with our JD
First strategy, the JD segment drove Group sales growth* through our store
rollout programme across Europe and North America, achieving growth of 4.7% in
the quarter. North America saw organic sales growth* of 1.4%, reflecting in
part a shift in the product launch schedule compared with last year. Europe
delivered organic sales growth* of 6.5% and we are seeing an improving trend
in the UK, helped in part by good weather.
Segment
Q126 Organic sales growth* LFL sales growth*
JD 4.7% (2.0)%
Complementary Concepts (1.8)% (5.5)%
Sporting Goods and Outdoors 0.2% 2.0%
Group 3.1% (2.0)%
Region
Q126 Organic sales growth* LFL sales growth*
North America 1.4% (5.5)%
Europe 6.5% 0.7%
UK 2.0% 0.4%
Asia Pacific 2.4% (5.5)%
Group 3.1% (2.0)%
Gross margin was 48.2%, in line with the prior period. On an organic basis,
excluding the impact from the acquisitions of Hibbett and Courir, gross margin
was 48.6%, up 0.4%pts on the prior period, reflecting our continued
disciplined trading approach.
The recent announcements in respect of tariffs continue to evolve and the
Group is monitoring the position carefully. Elevated tariffs have the
potential to impact the Group in three areas: -
· Global economy and our customers. The potential impacts are on
consumer confidence and, in the short term, the cost of goods and services for
US customers may rise to some degree with a potential impact on overall
consumer demand. We consider this to have the largest potential impact on the
Group.
· Our brand partners. They source most of their products from South
East Asia. We expect mitigating actions to be taken across the supply chain to
ensure that prices remain as competitive as possible for consumers.
· Goods and services not for resale, such as store fixtures and
fittings, and our own brand and licensed products. These products represent
less than 10% of total Group revenue and are sourced from a wide range of
countries. We have modelled the potential impact of tariffs on the Group and
it is not considered to be material.
We are taking action to mitigate any potential impact through further
diversifying the range of countries from which we source own brand and
licensed products, continuing to work closely with our brand partners and
ongoing cost control.
In summary, we have traded in line with our expectations in the first quarter.
The market remains volatile and visibility on the overall potential impact
from tariffs is low. Our strong and agile multi-brand model positions us well
to navigate these market conditions and we are focused on controlling our cost
base and delivering on the key strategic projects that underpin the delivery
of improved shareholder returns over the medium term.
Régis Schultz
Chief Executive Officer
20 May 2025
Chief Financial Officer's Statement
Financial Performance
FY25 is a 52-week period ended 1 February 2025. The comparative period is 53
weeks to 3 February 2024. To aid comparability, the headline results,
associated commentary and percentage changes are presented in the financial
performance report on an unaudited 52-week basis unless otherwise stated.
52 weeks Restated(1) Restated(1) Change (52 weeks vs 52 weeks)* Constant Currency Change (52 weeks vs 52 weeks) *
2025 52 weeks 53 weeks
(unaudited) 2024
2024*
£m £m £m
Revenue 11,458 10,397 10,542 10.2% 12.0%
Gross profit before adjusting items* 5,472 4,986 5,048 9.7% 11.5%
Gross margin before adjusting items* 47.8% 48.0% 47.9% (20)bps (20)bps
Operating costs before adjusting items* (4,423) (3,963) (4,019) 11.6% 13.5%
Interest on lease liabilities (112) (83) (84) 34.9% 37.2%
Operating profit before adjusting items after interest on lease liabilities* 937 940 945 (0.3%) 0.8%
Operating margin before adjusting items after interest on lease liabilities* 8.2% 9.0% 9.0% (80)bps (90)bps
Net finance (expense)/income excluding interest on lease liabilities (14) 21 21
Profit before tax and adjusting items* 923 961 966 (4.0%) (2.9%)
Adjusting items (208) (155) (155)
Profit before tax 715 806 811 (11.3%)
Operating Profit 903 921 927 (2.0%)
1. For the financial period ended 1 February 2025, the Group has
updated the adjusting items policy to include the amortisation of acquired
intangible assets. Please refer to Note 3 for further details of the
restatement.
* Throughout this Report,'*' indicates the use of alternative performance
measures. Please refer to pages 41 to 46 for further information including
reconciliations to statutory measures.
CONSOLIDATED INCOME STATEMENT
Revenue*
Group Revenue* increased 10.2% to £11,458m (FY24: £10,397m). Sales growth*
in constant currency was 12.0%. Organic sales growth* was 5.8% which comprised
0.3% like-for-like (LFL) sales growth* and 5.5% sales growth from net new
space and store conversions. In addition to organic growth there was 8.5%
growth from the part year benefit of the strategic acquisitions of Hibbett in
North America (£713m sales) and Courir in Europe (£139m sales) that have
significantly expanded the scale of our Complementary Concepts business in
these markets. There was a 2.1% reduction in sales from the disposal of
non-core businesses in the prior period.
Store sales grew 15.7% and organic store growth was 9.5% reflecting the
continued growth of our store network and successful in-store execution. As a
result overall store sales increased 4.0%pts to represent 79% of Group
revenue. Online sales declined 2.9%, and declined 6.6% excluding Hibbett and
Courir, and this reduction reflects the continuing post-Covid shift from
online back to store, opening of new stores, faster growth and acquisition of
businesses with lower percentage of online sales, and an increased focus on
profitable online sales. Subsequently the overall share of online sales
fell 3%pts to 20% of Group revenue.
Footwear has continued to trade more robustly than apparel, although both
categories grew in the period. Footwear in the lifestyle space is a resilient,
growth category driven by the continued growth in 'sneakers' around the world.
Growth in the period was 15.2% and footwear's share of our revenue increased
3%pts to 60% due mainly to the mix effect of acquiring Hibbett which has a
higher penetration of footwear in its sales. Apparel grew at a slower rate
due to challenging weather conditions, particularly in the UK and Europe,
where the spring/summer season was wetter than average. This had a knock-on
effect on margin as the industry sold more stock at discounted prices in
the summer sales season, ahead of the back-to-school period and then into
the autumn/winter season. Apparel revenue was up 4% with its share of revenue
falling 1%pt to 31% due mainly to the mix effect of acquiring Hibbett.
Gross Margin before Adjusting Items*
Total gross margin before adjusting items* was down (20)bps at 47.8% (FY24:
48.0%) with the decline reflecting the impact of Hibbett and Courir.
Excluding Hibbett and Courir, margins were flat period on period at 48.0%
reflecting our full price policy and pricing discipline in a more promotional
market.
Operating Costs before Adjusting Items*
Operating costs before adjusting items* increased 11.6% to £4,423m. Excluding
the impact of acquisitions and disposals, on a 52 week constant currency
basis, costs grew 7.8%, ahead of our organic revenue growth of 5.8%.
The majority of this increase is the incremental selling and distribution
costs of operating our newly opened stores, as well as the continued dual
running costs of our European distribution centre, while we fully commission
our new automated Heerlen distribution centre which has taken longer than
expected. Omni‑channel costs were lower as we optimised delivery costs and
focused our marketing spend more effectively. We have maintained staff costs
percentage of sales by delivering efficiencies across our stores and head
office teams offsetting in part the impact of national minimum and other wage
inflation pressures.
Administrative costs have increased due to higher technology costs for
increased cyber security, developing our JD STATUS loyalty scheme, and higher
depreciation as we continue to invest in upgraded systems. In addition we have
seen increased costs from investing in our Group support functions to improve
the quality or our internal teams, control environment, and project spend to
upgrade our systems.
During the year the Group has closed its Derby distribution centre to optimise
our UK distribution cost base for the current shape of our UK business
following the recent disposals of our non-core UK fashion businesses. This
has resulted in an impairment charge of £76m that has been charged to
adjusting items.
A breakdown of operating costs before adjusting items* is shown in the
table below.
52 weeks to 1 February 52 weeks to Change
2025* 27 January 2024 %
£m Restated¹
£m*
Selling and distribution expenses (3,933) (3,573) 10%
Administrative expenses before adjusting items (520) (428) 21%
Share of equity accounted investees 5 8 (38)%
Other operating income 25 30 (17)%
Operating costs before adjusting items (4,423) (3,963) 12%
1. For the financial period ended 1 February 2025, the Group has
updated the adjusting items policy to include the amortisation of acquired
intangible assets. Please refer to Note 3 for further details of the
restatement.
Net Finance Expense before Adjusting Items*
Net finance expense before adjusting items* in the period was £126m. Interest
on lease liabilities increased from £83m to £112m due to higher discount
rates applied to new and remeasured leases in the period, and the additional
costs arising from the ongoing strategic investment in new stores and
distribution centres over FY24 and FY25, along with the acquisitions of
Hibbett and Courir.
Finance income fell by £12m reflecting lower cash balances compared to the
previous period as the Hibbett and Courir acquisitions were funded partly
using cash. Finance expense excluding interest on lease liabilities rose by
£23m compared with the prior period, as a result of increased borrowings to
fund the acquisitions of Hibbett and Courir.
52 weeks to 1 February 52 weeks to Change
27 January 2024
2025
%
£m*
£m
Interest on lease liabilities (112) (83) 35%
Finance income 27 39 (31%)
Finance expense excluding interest on lease liabilities* (41) (18) 128%
Net finance expense excluding interest on lease liabilities* (14) 21
Net finance expense before adjusting items* (126) (62) 103%
Operating Profit before Adjusting Items and after Interest on Lease
Liabilities*
Operating profit before adjusting items and after interest on lease
liabilities* of £937m (FY24: £940m) was up 0.8% on a constant currency basis
and down 0.3% on a reported currency basis with the increase in profits
following the acquisitions of Hibbett and Courir offset partially by higher
operating costs, including the continued investment in our global functions
and infrastructure.
Profit Before Tax and Adjusting Items*
Profit before tax and adjusting items* was £923m (FY24: £961m) and fell
2.9% on a constant currency basis and 4.0% on a reported currency basis. This
reduction reflects the £35m increase in net finance expense excluding
interest on lease liabilities because of lower cash balances and incremental
borrowings related to the acquisitions of Hibbett and Courir.
For the remainder of this financial performance section the commentary
compares the 52 week period to 1 February 2025 to the 53 week period to
3 February 2024.
Adjusting Items
Adjusting items for the period were a net charge of £208m (FY24: net charge
of £155m), as detailed in the table below.
£m 52 weeks to 1 February 2025 53 weeks to 3 February 2024
Restated¹
Acquisition related costs; Hibbett & Courir 9 -
Adjusting items within Cost of Sales 9 -
Acquisition related costs 36 11
Impairment of tangible and intangible assets and investments 112 39
(Gain)/loss on divestments (78) 38
US Integration 5 -
Foreign exchange movements 5 -
Amortisation of acquired intangibles 57 49
Gain arising on SUR bankruptcy - (36)
Deferred consideration charge - 1
Adjusting items within administrative expenses 137 102
Impairment of loans not recoverable: ISRG Group - SUR bankruptcy - 58
Put and call options: movement in present value of put and call options 62 (6)
Impairment of loans not recoverable from non-consolidated joint venture - 1
Adjusting items within net finance expense 62 53
Adjusting items* 208 155
1. Please refer to Note 3 for further details of the restatement
The total charge for the period is £208m, of which £57m relates to a net
cash inflow and £265m was a non-cash charge.
Acquisition-related costs: Acquisition related costs of £45m
(£9m recognised within cost of sales and £36m recognised
within administrative expenses) are principally in respect of the Hibbett
and Courir acquisitions completed in July and November 2024 respectively.
Impairment of tangible and intangible assets and investments: the £112m
charge in the current period includes the impairment of fixed assets and
closure costs in relation to the Derby Distribution Centre ('DC') of £76m
which was closed in September 2024 following a review of the Group's UK DC
capacity requirements. In addition, following performance below expectations
in certain European markets, a strategic review of the store estate was
carried out, which concluded that 46 stores should be closed. As a result an
impairment charge of £29m has been recorded to reflect these planned
closures. There were other impairments of £7m.
Gain on divestments: The Group generated a gain of £78m on divestments. In
October 2024 the Group disposed of 21.58% of its shareholding in Applied
Nutrition. A gain of £75m arising from the disposal and gain on revaluation
of the retained investment on the date of disposal is recognised as an
adjusting item and the Group retains 9.78% shareholding. Other gains amounted
to £3m.
US Integration: The integration costs of £5m are associated with the
integration of the Group's US businesses following the acquisition of Hibbett.
This is the first part of a significant multi-year programme to create an
integrated platform for the nationwide growth of the JD Brand and Community
fascias in North America with an efficient supply chain and back office. We
are expecting this programme to deliver at least $25m annual savings over this
time frame at a one-off cash cost of around 1x the savings delivered.
Foreign exchange movements: Foreign exchange movements are £5m losses on
non-trading balances which are long term, interest bearing, non-trading
intercompany loans held by JD Plc with foreign subsidiaries (in a foreign
currency). The charge in FY24 was insignificant and has not been included in
the table above.
Amortisation of acquired intangibles: As disclosed in the FY24 annual report,
we have extended the definition of adjusting items to include amortisation of
acquired intangibles from our Profit before tax and adjusting items. This is a
charge of £57m in the period. We have restated the FY24 results for this
change, leading to a £49m charge moving from administrative expenses to
adjusting items within administrative expenses.
Put and call options: The £62m charge is the movement in the present value of
the put and call options for the buyouts of non-controlling interest ('NCI')
of Genesis Topco Inc ('Genesis') (£68m charge) and DTLR (£6m credit). The
increase in respect of the put and call options over Genesis, the holding
company for our North America businesses and of which the Group owns 80%,
reflects an increase in the value of our North American business following the
acquisition of Hibbett. In addition, there was a credit of £6m in relation
to the DTLR option, which was revalued prior to the acquisition of the NCI
which was completed in the period. Please refer to the Post Balance Sheet
Event section below for further details on the future plans for the Genesis
NCI buyout.
Operating Profit
Operating profit was £903m (FY24: £927m). This is due primarily to an
increase in adjusting items charged within operating profit of £44m driven
primarily by impairments and acquisitions which were partly offset by a gain
of £75m arising from the disposal of Applied Nutrition and gain on
revaluation of the retained investment.
Profit Before Tax
Profit before tax was £715m (FY24: £811m). The £96m decrease versus the
prior period is due to a £63m increase in net finance expense before
adjusting items* and a £53m increase in adjusting items, both as explained
above.
Income Tax Expense
The income tax expense for the period was £175m (FY24: £206m).
The effective tax rate fell from 25.4% to 24.5% due primarily
to non‑taxable income on the disposal of shares in Applied Nutrition,
together with a non-recurring tax credit relating to prior periods.
The income tax expense before adjusting items* for the period was £222m
(2024: £237m). The adjusted effective tax rate* fell from 24.5% to 24.1%
due to a non-recurring tax credit relating to prior periods, offset by the
increase in the UK's mainstream corporate tax rate from 19% to 25% on 1 April
2023, resulting in the UK rate increasing from 24% in FY24 to 25% in FY25.
Profits Attributable to Non-Controlling Interests
Profit attributable to NCIs fell £16m from £66m in FY24 to £50m in FY25.
This is due to the impact of the buyout of the 49.99% NCI in ISRG and the
buyout of the 40% NCI in MIG during the prior period, which has resulted in a
full period of 100% of profits being attributable to JD Group in FY25. The
fall is partially offset by a larger amount of profit being generated from the
Genesis Group due to the Hibbett acquisition. The only material NCI left in
the Group at the end of the period is the 20% in Genesis.
Earnings per Share
On a statutory basis, basic and diluted earnings per ordinary share fell from
10.45p to 9.50p due to the 12% reduction in Profit before tax, partially
offset by a lower effective tax rate.
Adjusted basic earnings per ordinary share* fell 3.4% from 12.81p (restated)
to 12.39p due to the reduced Profit before tax and adjusting items*, which was
partially offset by a lower adjusted effective tax rate*.
SEGMENTAL REPORT
A performance summary of the three reportable segments in the Group can be
seen in the table below.
As announced in the Group's FY24 Trading Update on 28 March 2024, these
financial statements to 1 February 2025 have been presented under the new
segmentation used for reporting. See Note 2 for further details.
The comparative period is 53 weeks to 3 February 2024. To
aid comparability, the headline results, associated commentary and
percentage changes are presented in the segmental report on an unaudited
52-week basis to the 27 January 2024.
FY25 Total JD Complementary Sporting Goods & Outdoor
Concepts
£m £m £m £m
Revenue 11,458 7,798 2,165 1,495
Gross profit before adjusting items* 5,472 3,804 998 670
Gross margin before adjusting items* 47.8% 48.8% 46.1% 44.8%
Operating costs before adjusting items* (4,423) (3,058) (786) (579)
Interest on lease liabilities (112) (81) (19) (12)
Operating profit before adjusting items after interest on lease liabilities* 937 665 193 79
Operating margin before adjusting items after interest on lease liabilities* 8.2% 8.5% 8.9% 5.3%
FY24 Total JD Complementary Sporting Goods & Outdoor Other(1)
Concepts
£m £m £m £m £m
Revenue 10,397 7,490 1,322 1,546 39
Gross profit before adjusting items* 4,986 3,658 626 685 17
Gross margin before adjusting items* 48.0% 48.8% 47.4% 44.3% 42.7%
Operating costs before adjusting items* (3,963) (2,869) (455) (626) (13)
Interest on lease liabilities (83) (61) (12) (10) -
Operating profit before adjusting items after interest on lease liabilities* 940 728 159 49 4
Operating margin before adjusting items after interest on lease liabilities* 9.0% 9.7% 12.0% 3.2% 9.5%
(1) 'Other' relates to businesses divested of in the previous period.
Total JD Complementary Sporting Goods & Outdoor
Concepts
Change Change Change Change
Revenue 10.2% 4.1% 63.8% (3.3%)
Gross margin before adjusting items* (20)bps - (130)bps 50bps
Operating costs before adjusting items* 11.6% 6.6% 72.4% (7.6%)
Operating profit before adjusting items after interest on lease liabilities* (0.3%) (8.7%) 21.6% 61.0%
Operating margin before adjusting items after interest on lease liabilities* (80)bps (120)bps (310)bps 210bps
JD
JD segment revenue was £7,798m, up 4.1% on the prior period and 5.8% at
constant currency. Excluding the impact of the disposal of non-core
businesses, organic sales growth was 7.1%. This included a 0.4% reduction in
LFL sales*. The growth came from our continued store portfolio expansion. 205
stores opened during the period of which 75 were in North America and 99 in
Europe, in line with our strategy. Gross margin remained flat at 48.8% versus
the prior period, as we remained disciplined in a promotional market, with
operating profit before adjusting items and after interest on lease
liabilities* down 8.7% due to continued investment in our people, supply
chain, technology infrastructure, cyber resilience and new stores to support
future long-term growth. This segment represented 68% of the Group's revenue
(FY24: 72%) and continues to be the primary focus under our JD First strategy
with 2,026 stores open at the end of the period.
JD UK
The UK is JD's most mature market and saw revenue* fall 3.7% to £2,663m
driven by the divestment of non-strategic brands over the previous 12 months.
Organic sales were down 1.1% and LFL sales down 3.0% reflecting the
challenging UK retail environment. We took action to improve the profitability
of our online business and limited our involvement in elevated promotional
activity in the market. Gross margin was down 60bps reflecting a promotional
market particularly on line and in apparel. Operating profit before adjusting
items and after interest on lease liabilities* was down 26% which reflects
our continued investment in the Group including people, technology
infrastructure and cyber resilience. JD Gyms had another strong year, growing
revenue by 5.3% to £133m, due to the annualisation of gyms operating 24
hours, increased pricing and an increase of seven new gyms to 92 (FY24: 85).
JD Europe
Growth in Europe continues to be driven by new store rollouts and conversions
as market awareness of the JD brand strengthens. Revenue* grew by 12.6% to
£2,199m (15.7% in constant currency), driven by LFL sales growth of 1.4% and
organic sales growth of 15.6%. This trading performance reflects consistent
growth across key markets and reinforced confidence in our long-term strategy.
Gross margin was up 150bps as we increased direct deliveries to our new
warehouse in the Netherlands, avoiding duty costs from the UK. Operating
profit before adjusting items and after interest on lease liabilities* was
up 6% on the prior period, reflecting the sales growth, and the improvement
in gross margin. Cost efficiencies across retail, online and supply chain
operations have been offset by higher interest costs on lease liabilities.
The Group has carried out a strategic review of its European store estate at
an individual store level, taking account of current profitability, continuing
inflationary cost pressure and learnings from the store rollout programme to
date. This review has resulted in an impairment charge of £29m across 46
stores. This has been charged to adjusting items.
JD North America
JD North America revenue* grew 6.4% to £2,436m (8.8% in constant currency*),
with the main driver being the JD fascia. Organic sales growth* of 8.6%
included 0.5% LFL growth* reflecting the growing presence of the JD brand in
line with the JD First strategy, which is offsetting the weaker performance
of Finish Line. There were 336 JD stores open at the end of the period in
North America compared with 235 in the prior period. 29 Finish Line stores
were converted to JD during the period and 45 exited, resulting in 257 Finish
Line stores and 256 concessions in Macy's at the end of the period. Gross
margin remained flat as we chose not to participate in the increased
promotional environment in line with our full price approach. Operating profit
before adjusting items and after interest on lease liabilities* was up 18% on
the prior period, driven by the new store growth and leveraging the
cost base.
JD Asia Pacific
Revenue* grew 3.6% to £501m (6.7% constant currency), driven by net new
space. Operating profit before adjusting items and after interest on
liabilities* was down by 2% as we continued to invest in fulfilment
capabilities as we grow scale in the region.
Complementary Concepts
Revenue* of £2,165m was up 63.8% on the previous period (+66.7% in constant
currency).
Community revenue, which includes Shoe Palace, DTLR and Hibbett (from July
2024), was up 70% to £1,806m (74% in constant currency). Organic sales
growth* of 5.1% includes LFL sales growth* of 1.3% and store growth in Shoe
Palace and DTLR. Hibbett contributed £713m of revenue in the period.
Complementary revenue, which includes the non-JD fascia stores in Eastern and
Central Europe, was up 38% to £359m (also 38% in constant currency),
following the acquisition of Courir in November 2024. Revenue* in our
non-JD fascia stores in Eastern and Central Europe was down 15% at £220m
reflecting the ongoing rationalisation of the fascias as we simplify the
business and convert some of the stores to the JD fascia. Courir contributed
£139m of revenue following its acquisition.
Sporting Goods and Outdoors
LFL sales in Sporting Goods grew by 7.6% during the period driven by increased
footfall and a lower promotional environment. Total revenue fell 4.1% to
£952m but operating profit before adjusting items and after interest on lease
liabilities* increased 35%, both as a result of the closure of the SUR
business in the prior period.
Outdoors Revenue* of £542m was down 1.8% on the prior period driven by -2.0%
LFL sales due to wet weather at the start of the period, which combined with
the early Easter resulted in lower sales of outdoor living products, notably
tents and camping equipment. However, operating profit increased by £11m to
£6m, as a result of a 190bps increase in gross margin resulting from reduced
freight charges and a rationalised supply chain footprint.
GEOGRAPHICAL REPORT
A performance summary of the four geographic segments in the Group can be seen
in the table below.
The comparative period is 53 weeks to 3 February 2024. To
aid comparability, the headline results, associated commentary and
percentage changes are presented in the segmental report on an unaudited
52-week basis to the 27 January 2024.
FY25 Total UK Europe North America Asia Pacific
£m £m £m £m £m
Revenue 11,458 3,205 3,510 4,242 501
Operating profit before adjusting items after interest on lease liabilities* 937 297 160 418 62
Operating margin before adjusting items after interest on lease liabilities* 8.2% 9.3% 4.6% 9.9% 12.3%
Number of stores 4,850 665 1,579 2,504 102
FY24 Total UK Europe North America Asia Pacific
£m £m £m £m £m
Revenue* 10,397 3,341 3,206 3,352 499
Operating profit before adjusting items after interest on lease liabilities* 940 389 131 353 67
Operating margin before adjusting items after interest on lease liabilities* 9.0% 11.6% 4.1% 10.5% 13.4%
Number of stores 3,317 674 1,285 1,269 89
Total UK Europe North America Asia Pacific
Change Change Change Change Change
Revenue* 10.2% (4.1%) 9.5% 26.6% 0.4%
Operating profit before adjusting items after interest on lease liabilities* (0.3%) (23.6%) 22.0% 20.1% (7.7%)
Operating margin before adjusting items after interest on lease liabilities* (80)bps (230)bps 50bps (60)bps (110)bps
Number of stores 1,533 (9) 294 1,235 13
The expansion of the Group's operations in North America, following the
acquisition in Hibbett and investment in new stores has resulted in it now
representing the largest geographic area from both a Revenue* and Operating
profit before adjusting items after interest on lease liabilities*
perspective, being 37% and 45% respectively.
The reduction in UK revenue reflects the divestment of non-core businesses
during the period.
CASHFLOW STATEMENT
A summary cashflow showing how the change in cash and cash equivalents(1) is
calculated, can be seen in the table below.
£m 52 weeks to 1 February 2025 53 weeks to 3 February 2024
Profit before tax 715 811
Add back impairments of tangible, intangible assets and investments 125 39
Add back other non-cash adjusting items 109 69
Less profit on disposal of associates (75) -
Depreciation and amortisation of non-current assets 786 664
Repayment of lease liabilities (420) (400)
Other 5 (22)
Operating cashflow net of lease repayments 1,245 1,161
Change in working capital (137) (197)
Capital expenditure (515) (530)
Income taxes paid (243) (208)
Other (11) (10)
Net cashflow before dividends, financing, acquisitions and disposals 339 216
Repayment of interest-bearing loans and borrowings (501) -
Draw down of interest-bearing loans and borrowings 865 -
Acquisition of subsidiaries and NCI (1,157) (611)
Cash consideration of disposals 95 -
Equity dividends paid (48) (50)
Dividends paid to NCI in subsidiaries net of dividend received - (2)
Change in cash and cash equivalents(1) (407) (447)
Cash and cash equivalents at the start of the period(1) 1,102 1,549
Cash and cash equivalents at the end of the period(1) 695 1,102
1. Cash and cash equivalents equates to the cash and cash equivalents
presented in the Consolidated Statement of Cash Flows, as reconciled in Note
11 of the Consolidated Financial Statements.
Profit before tax was £715m (FY24: £811m). The £96m decrease versus the
prior period is primarily due to a £63m increase in net finance expense
before adjusting items and a £53m increase in adjusting items, both as
explained on page 12.
Non-cash add backs of impairments and adjusting items (including profit on
disposal of associates) are explained within the CFO report on page 12.
Lease liability repayments increased 5% to £420m, driven by the extra leases
acquired with Hibbett and Courir, and our store expansion programme.
Total depreciation and amortisation was £786m, up £122m, or 18%, on the
prior period. £60m of this increase was due to assets acquired through
Hibbett and Courir. The remaining increase largely reflects our continued
store investment programme, as well as a small increase from our supply chain
investments in DCs, offset partly by a £10m reduction as a result of higher
incremental borrowing rates applied to renewed leases resulting in a lower
depreciation charge.
As a result, the Group operating cashflow net of lease repayments was
£1,245m, which was an increase of £84m compared to the prior period,
reflecting the cash generative nature of the JD Group.
There was an increase in working capital of £137m in the period, which was a
£60m lower increase than the prior period. In particular, inventory increased
only £10m versus the prior period excluding inventory acquired with Hibbett
and Courir, as the increased inventory from new store openings was offset by
improved management of inventory.
Capital expenditure in the period was £515m, down £15m on the prior period.
Continued investment in new store openings in support of our strategic plan
to increase the number of JD brand fascia stores around the world was offset
by lower investment in our supply chain. Significant investment was made
in the supply chain in FY24 as we developed new DC capacity in Europe, and
Australia.
52 weeks to 1 February 2025 53 weeks to 3 February 2024
£m £m
Stores & gyms 346 309
Supply chain infrastructure 110 151
Technology and other 59 70
Total capital expenditure excluding Other Non-Current Assets 515 530
Tax payments increased from £208m to £243m due to the timing of higher
payments made in the period and lower payments in the prior period, especially
in the UK.
Net cashflow before dividends, financing, acquisitions and disposals increased
£123m to £339m in the period, compared to £216m in the prior period,
demonstrating the ongoing cash generative nature of the JD Group.
The drawdown of interest-bearing loans and borrowings includes a new Term
Loan Facility Agreement drawn by the Group for a total commitment of $1
billion for the purpose of acquiring Hibbett.
On 25 July 2024, the commitment was drawn in full to facilitate the
completion of the acquisition. Post acquisition repayments were made on the
Term Loan and, as at 1 February 2025, the balance remaining was $700m. The
remaining repayment of interest-bearing loans and borrowings is £198m debt
acquired through Courir and £37m through Hibbett.
The Group is currently in the process of refinancing its existing debt
facilities of the £700m RCF, $300m Asset Backed Loan and $700m Hibbett term
loan. Based on ongoing discussions with lenders and market conditions, the
Group expects to complete the refinancing during H1 FY26.
Acquisition of subsidiaries and NCIs was £1,157m with £812m paid for
Hibbett and £275m for Courir (net of cash acquired on both acquisitions of
£76m) and excluding bank debt paid off post‑acquisition. The total cost of
Hibbett and Courir including £30m cash acquisition costs, debt repayment on
acquisition, net of cash acquired, was £1,352m.
Acquisitions of five smaller NCIs amounted to £40m. See acquisitions and
disposals notes 6 and 7 for further details.
Cash received on disposal of subsidiaries and associates was £95m, of which
the most significant disposal was £73m cash received from the part disposal
of our stake in Applied Nutrition.
As a result, the change in net cash and cash equivalents was an outflow of
£407m. Despite this reduction, we retained a strong balance sheet as our
closing cash and cash equivalents and bank overdrafts balance was £695m,
and net cash before lease liabilities was £52m.
Acquisitions
We expanded our Complementary Concepts offering in the year through the
acquisitions of Hibbett and Courir.
Hibbett
On 25 July 2024, the Group acquired 100% of the shares in Hibbett Inc
('Hibbett') for $1,077m. Headquartered in Birmingham, Alabama, Hibbett is a
leading sports fashion-inspired retailer with 1,179 stores located within
communities in 36 states across the US at the time of acquisition. Its main
retail fascias are Hibbett and City Gear.
The acquisition enhances our presence in North America and ensures the Group
has a proposition for consumers in key, under serviced US communities. We
have split our US fascias into three categories - 'Mass', 'Reach' and 'Focus.
'Mass' is the JD fascia, which targets the same young consumer that we target
with the JD fascia around the world. 'Reach' is both the Hibbett fascia for
convenient locations in underserved communities and the Finish Line fascia
within Macy's for an older, more female customer. And 'Focus' is using Shoe
Palace, DTLR and City Gear to focus on specific urban communities across North
America.
Hibbett also provides an enhanced platform for the mall-led, nationwide growth
of the JD brand in North America with its efficient supply chain and strong
back office. The deal is expected to be earnings accretive in the first full
year following acquisition, with expected cost synergies of at least $25
million over the medium term across our North American business. This
acquisition will strengthen our brand relationships further as we continue to
deliver a differentiated and world-class omnichannel, multi-fascias
proposition for customers and allow us to grow ahead of the North America
market and improve our return on space.
Courir
On 27 November 2024, the Group acquired 100% of the shares in Groupe Courir
SAS ('Courir') for €391m. Post acquisition the Group repaid €198m of bank
debt acquired. Courir is a market leader in sneakers in France, which is the
largest sneaker market in Europe, and the acquisition reinforces our position
within Europe. Looking forward, we are aiming to grow the Courir brand in
Europe.
Courir had 306 stores on acquisition with 303 bannered as Courir across
France, Spain, Belgium, the Netherlands, and Luxembourg. This excludes 21
stores across France and Portugal that were sold before the end of FY25 to
comply with European Competition regulation. In addition, there are a further
35 stores which trade under franchise agreements as Courir in North West
Africa, Middle East and French overseas territories.
Other Acquisitions
During the period, we also purchased the remaining NCI shareholdings in DTLR
Inc, Mainline Menswear Holdings Limited, Sport Zone Canarias SL and JD Canary
Islands Sports SL, and 2.5% of the NCI in JD Gyms (2.5% remaining).
Disposals
On 20 November 2024, the Group disposed of its 49% equity interest
shareholding in a joint venture, PT JD Sports Fashion Indonesia ('JD
Indonesia'), for cash consideration of £6 million.
In October 2024 the Group disposed of 21.58% of its shareholding in Applied
Nutrition, as part of an IPO listing on the London Stock Exchange for cash
proceeds of £73m. A gain of £75m arising from the disposal and gain on
revaluation of the retained investment on the date of disposal is recognised
as an adjusting item.
We also divested of a further three non-core businesses; Bodytone
International Sport SL, Total Swimming Holdings Limited and Gym King
(Holdings) Limited.
Capital Allocation Priorities, Dividends and Share Buyback Programme
The Board recognises that the Group is cash generative and is committed to
further enhancing returns to shareholders.
The strategy is therefore to drive shareholder value by growing organic
revenue ahead of the market and growing profit ahead of revenue. This will
drive strong cash generation and enhance shareholder returns.
Underpinned by a strong balance sheet, our capital allocation priorities are:
· Organic investment in the business. We expect capital expenditure
to trend from c.5% of revenue to 3-3.5% over the medium term.
· Ensure we can meet future commitments including the buyout of the
Genesis NCI in 2029 and 2030. See the post balance sheet event note 14 for
further detail.
· Pay a progressive dividend.
· Using surplus cash to improve returns, either through increasing
investment in the Group, M&A or providing incremental returns to
shareholders.
Consequently, the Board is proposing to increase the total dividend per share
for the period to 1.00p (2024: 0.90p). This results in a recommended final
dividend per share of 0.67p, reflecting a one-third/two-thirds split between
the interim and the final dividend, keeping the payment split in line with
the phasing of profit generated in the period.
Given the weight of trading is biased towards the second half in the year, we
propose to set the interim dividend in future as being one third of the prior
year full year dividend with the final dividend reflecting trading for the
full year.
In addition, the Board has recognised the Group is now moving into a lower
phase of capital investment with no material M&A opportunities in the
pipeline and, reflecting the liquidity headroom created by the deferral of the
Genesis option, it is now in a position to provide incremental shareholder
returns. In line with this, the Group has commenced an initial share buyback
programme of up to £100m. The programme will complete no later than
31 July 2025.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Total assets at period end of £9,954m represents an increase compared to the
prior period end of £8,048m total assets. The acquisitions of Hibbett and
Courir have contributed significant balances across all lines of the
Consolidated Statement of Financial Position. The most significant of which
are goodwill of £777m, fascia names of £260m, property, plant and equipment
of £227m, right of use assets of £413m and inventories of £357m.
Total liabilities have also increased compared to the prior period end to
£6,582m (2024: £5,179m). Interest bearing loans and borrowings have
increased from £130m to £679m with the $1bn term loan taken out in the
period ($700m outstanding at 1 February 2025). Lease liabilities increased by
£492m largely through the Hibbett and Courir acquisitions.
The change in net cash and cash equivalents was an outflow of £407m for
reasons explained above. Despite this reduction, the Group retained a strong
balance sheet with net cash before lease liabilities* of £52m.
STORE PORTFOLIO
The Group has continued to invest in growing the JD fascia across its key
markets, while reducing the number of non-JD stores as the business is
simplified and it pursues its JD Brand First strategy.
JD
We opened 205 new stores, in addition, we converted 21 stores to the JD
fascia in MIG and ISRG that were previously within Complementary Concepts, and
converted 29 Finish Line stores to JD fascia.
We closed 103 stores, of which 29 were JD fascia, mostly in Europe, 66 were
Finish Line and Macy's, as we continued to rationalise our store portfolio in
North America. In addition there were eight other fascia closures.
We opened the period with 1,903 stores, of which 1,252 were JD fascia (66%),
and we ended with 2,026 stores of which 1,475 were JD fascia (73%), 257 were
Finish Line fascia and 256 Macy's.
After opening four new gyms, closing one and acquiring four gyms, the Group
now has 92 JD gyms in the UK market.
Complementary Concepts
In Complementary Concepts, we ended the period with 2,221 stores, including
999 Hibbett, 251 DTLR, 200 City Gear, 199 Shoe Palace and 297 Courir stores.
81 stores were opened in the period with 36 in Hibbett and City Gear, 22 in
Shoe Palace and 15 in DTLR.
There were 132 closures in the period, of which 101 are within MIG, with eight
stores converting to the JD fascia, as part of our programme to reduce the
number of non-JD fascia stores in Eastern and Central Europe as we simplify
the business.
Sporting Goods and Outdoor
In Sporting Goods, we opened 13 stores across Iberia, Greece and Cyprus and
converted 13 stores within ISRG to the JD fascia.
In Outdoor, we closed 24 stores, most of which were Blacks, and converted 27
Blacks stores to the Go Outdoor fascia.
Franchise
In addition, the Group now has 23 JD stores operating under three franchise
agreements across the Middle East, Southeast Asia and South Africa, and 35
Courir franchised stores across ten countries.
A summary of the total store movements in the period is below.
No. of stores Opening New stores Closures Acquisitions Transfers Closing
JD Brand UK 431 17 (14) - - 434
North America JD 240 73 (3) - 29 339
Finish Line 606 2 (66) - (29) 513
Europe 537 99 (19) - 21 638
Asia Pacific 89 14 (1) - - 102
Total 1,903 205 (103) - 21 2,026
Complementary Concepts North America 423 73 (23) 1,179 - 1,652
Europe 372 8 (109) 306 (8) 569
Total 795 81 (132) 1,485 (8) 2,221
Sporting Goods & Outdoors Europe (Sporting Goods) 376 13 (4) - (13) 372
UK (Outdoor) 243 12 (24) - - 231
Total 619 25 (28) - (13) 603
Group Total 3,317 311 (263) 1,485 - 4,850
POST-BALANCE SHEET EVENTS
Genesis Put and Call Amendment
In March 2025, an amendment was made to the Genesis shareholders' agreement.
Under the revised terms, the exercise periods for the Non-Controlling Interest
(NCI) put option and the JD call options have been deferred and can now be
exercised in two equal instalments of 10% with two exercise periods, as
opposed to the previous agreement of four equal instalments of 5%.
The first exercise period for the options will now occur following the
financial year ending in 2029, and the second exercise period will be
following the financial year ending in 2030. As a result of this change, the
current portion of the liability will be presented as non-current at FY26.
The method for calculating the option price remains unchanged and continues to
be based on a multiple of earnings before interest, tax, depreciation and
amortisation (EBITDA) for the relevant financial period, adjusted for
post-closing cash and debt. The cap on the total liability remains unchanged
at £1.5bn.
Share Buyback
As referenced above, the Group has commenced a share buyback programme of
£100m on 9 April 2025, which will complete no later than 31 July 2025.
Consolidated Income Statement
For the 52 weeks ended 1 February 2025
Note 52 weeks to 1 February 2025 Restated (1)
53 weeks to 3 February 2024
Profit before Adjusting Profit for Profit before Adjusting Profit for
adjusting items the period adjusting items the period
items £m £m items £m £m
£m £m
Revenue 2 11,458 - 11,458 10,542 - 10,542
Cost of sales 3 (5,986) (9) (5,995) (5,494) - (5,494)
Gross profit 5,472 (9) 5,463 5,048 - 5,048
Selling and distribution expenses (3,933) - (3,933) (3,623) - (3,623)
Administrative expenses 3 (520) (137) (657) (434) (102) (536)
Share of profit of equity-accounted investees 5 - 5 8 - 8
Other operating income 25 - 25 30 - 30
Operating profit 1,049 (146) 903 1,029 (102) 927
Finance income 27 - 27 39 - 39
Finance expenses 3 (153) (62) (215) (102) 6 (96)
Impairment loss on financial assets - - - - (59) (59)
Net financial expense (126) (62) (188) (63) (53) (116)
Profit before tax 923 (208) 715 966 (155) 811
Income tax expense 4 (222) 47 (175) (237) 31 (206)
Profit for the period 701 (161) 540 729 (124) 605
Attributable to equity holders of the parent 490 539
Attributable to non-controlling interest 50 66
Basic earnings per ordinary share 5 9.50p 10.45p
Diluted earnings per ordinary share 5 9.50p 10.45p
(1) For the financial period ended 1 February 2025, the Group has
updated the adjusting items policy to include the amortisation of acquired
intangible assets. Please refer to Note 3 for further details of the
restatement.
Consolidated Statement of Comprehensive Income
For the 52 weeks ended 1 February 2025
52 weeks to 53 weeks to 3 February
1 February 2024
2025 £m
£m
Profit for the period 540 605
Other comprehensive income:
Items that may be classified subsequently to the Consolidated Income
Statement:
Exchange differences on translation of foreign operations 28 (31)
Items that won't be classified subsequently to the Consolidated Income
Statement:
Fair value movement on financial investments 4 -
Total other comprehensive income/(expense) for the period 32 (31)
Total comprehensive income for the period (net of income tax) 572 574
Attributable to equity holders of the parent 514 513
Attributable to non-controlling interest 58 61
The accompanying notes form part of the announcement.
Consolidated Statement of Financial Position
As at 1 February 2025
Note As at As at
1 February 3 February
2025 2024
£m £m
Non-current assets
Intangible assets 2,364 1,429
Property, plant and equipment 1,490 1,152
Investment properties 3 3
Right-of-use assets 2,813 2,297
Other assets 71 54
Investments in associates and joint ventures 1 44
Other Investments 38 -
Trade and other receivables 1 1
Deferred tax assets 4 32 24
Total non-current assets 6,813 5,004
Current assets
Inventories 2,021 1,593
Trade and other receivables 277 253
Income tax receivables 55 11
Cash and cash equivalents 731 1,153
Current assets excluding held-for-sale 3,084 3,010
Assets held-for-sale 12 57 34
Total current assets 3,141 3,044
Total assets 9,954 8,048
Current liabilities
Interest-bearing loans and borrowings (88) (93)
Lease liabilities (493) (416)
Trade and other payables (1,580) (1,446)
Put and call option liabilities 8 (188) -
Provisions (10) (8)
Income tax liabilities (20) (26)
Current liabilities excluding held-for-sale (2,379) (1,989)
Liabilities held-for-sale 12 (50) (8)
Total current liabilities (2,429) (1,997)
Non-current liabilities
Interest-bearing loans and borrowings (591) (37)
Lease liabilities (2,566) (2,068)
Other payables (145) (155)
Put and call option liabilities 8 (669) (810)
Provisions (27) (22)
Deferred tax liabilities 4 (155) (90)
Total non-current liabilities (4,153) (3,182)
Total liabilities (6,582) (5,179)
Net assets 3,372 2,869
Capital and reserves
Issued ordinary share capital 3 3
Share premium 468 468
Retained earnings 2,633 2,214
Share based payment reserve 4 3
Foreign currency translation reserve 91 71
Put and call option reserve (277) (302)
Total equity attributable to equity holders of the parent 2,922 2,457
Non-controlling interest 450 412
Total equity 3,372 2,869
The accompanying notes form part of the announcement.
Consolidated Statement of Changes in Equity
For the 52 weeks ended 1 February 2025
Ordinary Share Retained earnings Put and call option reserve Share-based payments reserve Foreign currency translation reserve Total equity attributable to equity holders of the parent Non-controlling interest Total
share premium £m £m £m £m £m £m equity
capital £m
£m
Balance at 28 January 2023 3 468 1,975 (425) - 97 2,118 514 2,632
Profit for the period - - 539 - - - 539 66 605
Other comprehensive income:
Exchange differences on translation of foreign operations - - - - - (26) (26) (5) (31)
Total comprehensive income for the period - - 539 - - (26) 513 61 574
Dividends to equity holders - - (50) - - - (50) (2) (52)
Additions to put and call options held with non-controlling interests - - - (429) - - (429) - (429)
Lapsed and disposed put options held by non-controlling interests - - 129 72 - - 201 - 201
Acquisition of non-controlling interest - - (379) 480 - - 101 (149) (48)
Divestment of non-controlling interest - - - - - - - (12) (12)
Share-based payment charge - - - - 3 - 3 - 3
Balance at 3 February 2024 3 468 2,214 (302) 3 71 2,457 412 2,869
Profit for the period - - 490 - - - 490 50 540
Other comprehensive income:
Exchange differences on translation of foreign operations - - - - - 20 20 8 28
Fair value movement on financial investments - - 4 - - - 4 - 4
Total comprehensive income for the period - - 494 - - 20 514 58 572
Dividends to equity holders (Note 9) - - (48) - - - (48) - (48)
Lapsed and disposed put options held by non-controlling interests - - (10) 25 - - 15 - 15
Acquisition of non-controlling interest (Note 6) - - (17) - - - (17) (16) (33)
Divestment of non-controlling interest (Note 7) - - - - - - - (4) (4)
Share-based payment charge - - - - 1 - 1 - 1
Balance at 1 February 2025 3 468 2,633 (277) 4 91 2,922 450 3,372
The accompanying notes form part of the announcement.
Consolidated Statement of Cash Flows
For the 52 weeks ended 1 February 2025
Note 52 weeks to
1 February 53 weeks to 3 February
2025 2024
£m £m
Cash flows from operating activities
Profit after taxation 540 605
Adjustments reconciling profit after tax to operating cash flows(1) 11 1,084 846
Cash generated from operations 1,624 1,451
Interest paid (41) (18)
Lease interest paid (112) (84)
Income taxes paid (243) (209)
Net cash from operating activities 1,228 1,140
Cash flows from investing activities
Interest received 27 39
Proceeds from sale of non-current assets 3 11
Acquisition of intangible assets (28) (30)
Acquisition of property, plant and equipment (487) (500)
Acquisition of other non-current assets (19) (10)
Dividends received from equity-accounted investees 5 -
Cash consideration of disposals (net of cash disposed) 7 95 (54)
Acquisition of subsidiaries (net of cash acquired) 6 (1,090) -
Net cash used in investing activities (1,494) (544)
Cash flows from financing activities
Repayment of interest-bearing loans and borrowings (501) (125)
Drawdown of interest-bearing loans and borrowings 865 119
Repayment of lease liabilities (420) (400)
Deferred consideration paid - (5)
Acquisition of non-controlling interests 6 (37) (552)
Equity dividends paid 9 (48) (50)
Dividends paid to non-controlling interests in subsidiaries - (2)
Net cash used in financing activities (141) (1,015)
Net (decrease) in cash and cash equivalents (407) (419)
Cash and cash equivalents at the beginning of the period(2) 10 1,102 1,549
Foreign exchange losses on cash and cash equivalents 10 - (28)
Cash and cash equivalents at the end of the period(2) 10 695 1,102
(1) The format of the Consolidated Statement of Cash Flows has been
amended from the prior period to present adjustments reconciling profit after
tax to operating cash flows in a separate Note 11.
(2) Cash and cash equivalents at 1 February 2025 includes £nil
million (3 February 2024: £75 million) within assets held-for-sale (see Note
12).
The accompanying notes form part of the announcement.
1. Basis of Preparation
General Information
JD Sports Fashion Plc (the 'Company') is a company incorporated in the United
Kingdom and registered in England and Wales. The financial statements for the
52 week period ended 1 February 2025 represent those of the Company and its
subsidiaries (together referred to as the 'Group'), with the prior period
comparatives being a 53 week period ended 3 February 2024. The financial
statements were authorised for issue by the Board of Directors on 20 May
2025.
Basis of Preparation
While the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRSs), this announcement does
not itself contain sufficient information to comply with IFRSs.
The announcement was approved by the Board of Directors on 20 May 2025. The
financial information in this announcement does not constitute the Group's
statutory accounts for the periods ended 1 February 2025, or 3 February 2024.
The statutory accounts for the year ended 1 February 2025, on which the
auditors have given an unqualified audit report, have not yet been filed with
the Registrar of Companies. The statutory accounts for the year ended 3
February 2024 have been delivered to the Registrar of Companies. The auditors
have reported on those accounts; their report was unqualified, did not include
a reference to any matters to which the auditors drew attention by way of
emphasis without qualifying their report and did not contain a statement
498(2) or (3) of the Companies Act 2006.
The audited Consolidated Financial Statements from which the results are
extracted have been prepared under the historical cost convention in
accordance with IFRS (International Financial Reporting Standards), as adopted
by those parts of the Companies Act 2006 applicable to companies reporting
under IFRS. The standards used are those published by the International
Accounting Standards Board (IASB) and effective at the time of preparing these
financial statements.
The Directors consider it appropriate to adopt the going concern basis of
accounting in preparing the financial statements of the Group and Company.
Going Concern
The Directors have prepared the Group and the Company financial statements on
a going concern basis for the following reasons:
At 1 February 2025 the Group had a total cash and cash equivalents balance of
£695 million (3 February 2024: £1,102 million). The Group has committed UK
borrowing facilities of £700 million (3 February 2024: £700 million) that
are available up to 6 November 2026, of which £36 million (3 February
2024: £Nil) has been drawn down in the period. The Group has US facilities,
excluding the new term loan to acquire Hibbett, of approximately $300 million
is available up until 24 September 2026. Of this $300 million, $15 million
(3 February 2024: $13 million) was drawn down in the period.
On 23 April 2024, the Group entered into a new Term Loan Facility Agreement
for a total commitment of $1 billion for the purpose of acquiring Hibbett Inc.
On 25 July 2024 the commitment was drawn in full to facilitate the completion
of the acquisition. Post acquisition repayments have been made on the Term
Loan and as at 1 February 2025 the balance remaining is $700 million. The Term
of the facility is 27 months to July 2026 after allowing for extension options
in sole discretion of the Group.
The total liquidity from cash and available facilities is therefore c.£1.8
billion at 1 February 2025 (3 February 2024: c.£2.0 billion).
There has been no material change in the extent of cash and facilities
available since the period end.
The Group is currently in the process of refinancing its existing debt
facilities of the £700m RCF, $300m Asset Backed Loan and $700 Hibbett term
loan. Based on ongoing discussions with lenders and market conditions, the
Group expects to complete the refinancing during H1 FY26.
These facilities are subject to certain covenants. The Directors believe that
the Group is well placed to manage its business risks successfully despite the
current uncertain economic outlook.
The Directors have prepared cash flow forecasts for the Group covering a
period of at least 12 months from the date of approval of the Group and
Company financial statements, including a range of severe but plausible
downside scenarios. These forecasts indicate that the Group and Company will
be able to operate within the level of its agreed facilities and in compliance
with applicable covenants.
The Directors have prepared severe but plausible downside scenarios which
cover the same period as the base case. An increase of US cost of goods
arising from geopolitical uncertainty has been considered, in addition to a
range of reasonably plausible downside scenarios, for the purposes of
viability reporting. This has considered the specifics of a significant
business continuity event adversely impacting one of the Group's main
Distribution Centres (Kingsway) across the Q4 FY26 peak trading period; a
significant cyber-attack resulting in a significant proportion of the Group's
stores being unable to trade for a period of one month, impacting the peak
trading period of December 2025; and a severe but plausible reduction in the
allocation of stock, or business interruption impacting the availability of
stock, from one of our key Sports Fashion suppliers.
The forecast cash flows reflecting the above scenarios indicate that there
remains sufficient headroom for the Group to operate within the committed
facilities and to comply with all relevant banking covenants during the
forecast period. Furthermore, mitigating actions within the Group's control
could be taken, should these severe but plausible scenarios occur, including
reductions in capital expenditure, discretionary spend and dividends. These
mitigating actions have not been modelled.
A reverse stress test has also been performed on the base forecasts which
indicates that a combination of the above severe but plausible scenarios all
occurring at the same time would be required for the Group to breach a
covenant before consideration of mitigating actions. A combination of all the
factors above would not exhaust liquidity. This is not considered to be a
plausible scenario, as the combination of all scenarios simultaneously is
considered to be exceptionally remote.
The Directors have considered all of the factors noted above and are confident
that the Group has adequate resources to continue to meet all liabilities as
and when they fall due for a period of at least 12 months from the date of
approval of these financial statements. Accordingly, the financial statements
have been prepared on a going concern basis.
Alternative Performance Measures
The Directors measure the performance of the Group based on a range of
financial measures, including measures not recognised by UK-adopted
International Financial Reporting Standards. These Alternative Performance
Measures may not be directly comparable with other companies' Alternative
Performance Measures and the Directors do not intend these to
be a substitute for, or superior to, IFRS measures. The Directors believe
that these Alternative Performance Measures assist in providing additional
useful information on the trading performance of the Group.
Alternative Performance Measures are used to enhance the comparability of
information between reporting periods, by accounting for adjusting items.
Adjusting items are disclosed separately when they are considered unusual in
nature and not reflective of the trading performance and profitability of the
Group. The separate reporting of adjusting items, which are presented as
adjusting within the relevant category in the Consolidated Income Statement,
helps provide an indication of the Group's trading performance. An
explanation as to why items have been classified as adjusting is given in Note
3. Further information can be found in the Alternative Performance Measures
section on pages 41 to 46.
For the financial period ended 1 February 2025, the Group has updated the
adjusting items policy to include the amortisation of acquired intangible
assets. This update is intended to provide greater clarity over the underlying
trading performance of the Group. The updated policy is in line with the
majority of large, UK listed retail companies and therefore assists with
comparability. See Note 3 for further detail.
Adoption of New and Revised Standards
The following new standards and amendments became effective for the period
ended 1 February 2025. These have no significant impact on the consolidated
results or financial position.
· Amendments to IAS 1 - Classification of Liabilities as Current or
Non-Current;
· Amendments to IFRS 10 - Lease Liability in a Sale and Leaseback;
· Amendments to IAS 1 - Non-Current Liabilities with Covenants;
· Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements;
and,
· Amendments to IFRS 16 - Leases - Lease Liability in a Sale and
Leaseback.
At the date of authorisation of these consolidated Financial Statements, the
Group has not applied the following new and revised standards and amendments
that have been issued but are not yet effective:
· Amendments to IAS 21 - Lack of Exchangeability (effective from 1
January 2025);
· Amendments to IFRS 9 and IFRS 7 - Classification and Measurement
of Financial Instruments (effective from 1 January 2026);
· Amendments to IFRS 9 and IFRS 7 - Contracts Referencing
Nature-dependent Electricity (effective from 1 January 2026);
· IFRS 19 Subsidiaries without Public Accountability (effective
from 1 January 2027); and,
· IFRS 18 Presentation and Disclosures in Financial statements
(effective from 1 January 2027).
The Group continues to monitor the potential impact of other new standards and
interpretations which may be endorsed and require adoption by the Group in
future reporting periods.
Critical Accounting Judgements and Key Sources of Estimation Uncertainty
The preparation of financial statements in conformity with adopted IFRSs
requires management to make judgements, estimates and assumptions that affect
the application of policies and reported amounts of assets and liabilities,
income and expenses.
The estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgements
and estimates about carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may differ
from these estimates.
Critical Accounting Judgements
The following are critical judgements, apart from those involving estimations
(which are presented separately below), that management have made in the
process of applying the Group's accounting policies and that have the most
effect on the amounts recognised in the Consolidated Group Financial
Statements.
Adjusting Items
Management exercises significant judgement in assessing whether items should
be classified as adjusting items. This assessment covers the nature of the
item, cause of occurrence and/or scale of impact of that item on the reported
performance. In determining whether an item should be presented as adjusting,
the Group considers items which are significant because of either their size
or their nature which management believe would distort an understanding of
earnings if not separately presented.
An explanation as to why items have been classified as adjusting is given in
Note 3. Further information about metrics that the Group utilise which exclude
adjusting items can be found in the Alternative Performance Measures section
on pages 41 to 46.
Key Sources of Estimation Uncertainty
The key assumptions about the future, and other key sources of estimation
uncertainty at the reporting period end, that may have a significant risk of
causing a material adjustment to the carrying amount of assets and liabilities
within the next financial period are discussed below:
Genesis Put and Call Option
Genesis Put and Call Option agreements that allow the Group's equity partners
to require the Group to purchase a non-controlling interest are recorded in
the consolidated balance sheet initially at the present value of the
redemption amount, in accordance with IAS 32 Financial Instruments:
Presentation. On initial recognition, the corresponding amount is recognised
against the put and call option reserve. Changes in the measurement of the
financial liability due to the unwinding of the discount or changes in the
amount that the Group could be required to pay are recognised in the
Consolidated Income Statement. If the contract expires without delivery, the
carrying amount of the financial liability is reclassified to equity,
otherwise the financial liability is derecognised for the amount settled.
The key significant option outstanding as at 1 February 2025 relates to the
Group's US sub-group, Genesis. The Genesis put liability at 1 February 2025
was £831 million (2024: £763 million).
The Group uses a third-party valuation expert to independently determine the
present value of the exercise price of the Genesis put and call options. The
approach uses a Monte-Carlo simulation model applying a geometric Brownian
motion to project the share price and an arithmetic Brownian motion for the
projection of EBITDA forecasts.
The critical estimate used to value the put and call option liability is the
EBITDA forecasts and growth assumptions for future periods. Further
information about the sensitivities used can be found in Note 8.
2. Segmental analysis
Information regarding the Group's reportable segments for the 52 weeks to
1 February 2025 is shown below. The balances presented are the key
performance metrics assessed by the CODM (Chief Operating Decision Maker).
As announced in the Group's FY24 Trading Update on 28 March 2024, these
financial statements to 1 February 2025 have been presented under the new
segmentation used for reporting. The appointment of Regis Schultz as CEO on 2
August 2022 and subsequent announcement of a refinement in strategy at the
Capital Markets day on 2 February 2023 resulted in a change in focus with
respect to JD fascia's, territories and vision for the Group over the next
five years. This has continued to lead to various alterations in internal
reporting, business review and resource allocation over the 2023-2024 period.
Consequently, a new reporting structure has been derived in order to provide
the CODM with information required to deliver the renewed strategy for the
Group. The internal reporting changed at the beginning of FY25, and therefore
this triggered a change to the Group's operating segments. Acquisitions in the
period Hibbett and Courir are reported under Complementary Concepts, and
following the NCI acquisition of the Mainline business, this now sits under JD
for FY25, a change from 'Other' in FY24. This is consistent with IFRS 8,
whereby changes in the composition of operating segments must be considered
when there has been a significant internal reorganisation.
Within the FY24 RNS, a proforma disclosure of the Group's FY24 results under
the new segments was presented. As disclosed in our 22 August 2024 'Additional
Financial information', upon further review of the disclosure, a gross up
difference of £49m was identified in relation to the consolidation entries
between "JD" and "Other" requiring an increase in JD operating profit before
adjusting items and a decrease in Other. There is no impact on the
consolidated numbers.
Income statement JD Complementary Sporting Goods Total
£m Concepts and Outdoors £m
£m £m
Revenue 7,798 2,165 1,495 11,458
Gross profit before adjusting items 3,804 998 670 5,472
Gross margin before adjusting items 48.8% 46.1% 44.8% 47.8%
Operating costs before adjusting items (3,059) (785) (579) (4,423)
Operating profit before adjusting items 745 213 91 1,049
Operating margin before adjusting items 9.6% 9.8% 6.1% 9.2%
Net finance expense (86) (24) (16) (126)
Profit before tax and adjusting items 659 189 75 923
Assets and liabilities JD Complementary Sporting Goods Total
£m Concepts and Outdoors £m
£m £m
Inventories 1,009 651 361 2,021
Other segment information JD Complementary Sporting Goods Total
£m Concepts and Outdoors £m
£m £m
Capital expenditure:
Intangible assets (Software development) 21 1 6 28
Property, plant and equipment 397 44 37 478
Depreciation, amortisation and impairments:
Amortisation of intangible assets 53 29 15 97
Depreciation of property, plant and equipment 172 27 31 230
Depreciation of right-of-use assets 282 108 68 458
Impairment of non-current assets (adjusting items) 104 - - 104
Impairment of non-current assets (non-adjusting items) 4 4 1 9
The comparative segmental results for the 53 weeks to 3 February 2024 are
shown below:
Income statement Restated(1) Restated(1) Restated(1) Restated(1) Restated(1)
JD Complementary Sporting Goods Other Total
£m Concepts and Outdoors £m £m
£m £m
Revenue 7,593 1,341 1,569 39 10,542
Gross profit before adjusting items 3,703 634 694 17 5,048
Gross margin before adjusting items 48.8% 47.3% 44.2% 43.6% 47.9%
Operating costs before adjusting items (2,909) (462) (635) (13) (4,019)
Operating profit before adjusting items 794 172 59 4 1,029
Operating margin before adjusting items 10.5% 12.8% 3.8% 10.3% 9.8%
Net finance expense (31) (16) (16) - (63)
Profit before tax and adjusting items 763 156 43 4 966
Assets and liabilities Restated(1) Restated(1) Restated(1) Restated(1)
JD Complementary Sporting Goods Total
£m Concepts and Outdoors £m
£m £m
Inventories 959 307 327 1,593
Other segment information Restated(1) Restated(1) Restated(1) Restated(1)
JD Complementary Sporting Goods Total
£m Concepts and Outdoors £m
£m £m
Capital expenditure:
Intangible assets (software development) 25 1 4 30
Property, plant and equipment 449 48 33 530
Depreciation, amortisation and impairments:
Amortisation of intangible assets 29 14 30 73
Depreciation of property, plant and equipment 128 26 24 178
Depreciation and amortisation of right-of-use assets 271 77 65 413
Impairment of non-current assets (adjusting items) 10 - 29 39
Impairment of non-current assets (non-adjusting items) - - 22 22
(1) For the financial period ended 1 February 2025, the Group has
changed the reportable and operating segments. Acquisitions in the period
Hibbett and Courir are reported under Complementary Concepts, and following
the NCI acquisition of the Mainline business, this now sits under JD for FY25,
a change from 'Other' in FY24, and meaning for FY25 there is no longer an
'Other' segment.
Geographical Information
The following table provides analysis of the Group's revenue by geographical
market, irrespective of the origin of the goods/services:
Revenue 52 weeks to 53 weeks to
1 February 3 February
2025 2024
£m £m
UK 3,205 3,509
Europe 3,510 3,094
North America 4,242 3,414
Asia Pacific 501 525
11,458 10,542
The revenue from any individual country, with the exception of the UK
(£3,205m) and US (£4,111m) is not more than 10% of the Group's
total revenue.
Revenue by Channel
Revenue 52 weeks to 53 weeks to
3 February
1 February
2024
2025 £m
£m
Retail stores 9,081 7,957
Online 2,251 2,350
Other(1) 126 235
11,458 10,542
(1) Other relates to revenue from gym memberships, wholesale and
commission sales.
Revenue by Product Type
Revenue 52 weeks to 53 weeks to
1 February 3 February
2025 2024
£m £m
Footwear 6,819 5,920
Apparel 3,550 3,408
Accessories 702 670
Other(2) 387 544
11,458 10,542
(2) Other relates to revenue from sales of outdoor living
equipment, delivery income and revenue from gym memberships.
3. Adjusting Items
The Group exercises judgement in assessing whether items should be classified
as adjusting items. This assessment covers the nature of the item, cause of
occurrence and scale of impact of that item on the reported performance. In
determining whether items should be presented as adjusting items, the Group
considers items that are significant because of either their size or their
nature which management believe would distort an understanding of earnings if
not adjusted. In order for an item to be presented as an adjusting item, it
should typically meet at least one of the following criteria:
· Impairments of tangible and intangible assets, investments and
loan receivables not recoverable
· Unusual in nature or outside the normal course of business (for
example, the non-cash movement in the present value of put and call options,
and foreign currency movements on non-trading intercompany balances)
· Items directly incurred as a result of either an acquisition, an
anticipated acquisition or a divestment, or arising from a major business
change or restructuring programme (including the amortisation of acquired
intangible assets, see below for further detail).
For the financial period ended 1 February 2025, the Group has updated the
adjusting items policy to include the amortisation of acquired intangible
assets. This update is intended to provide greater clarity over the underlying
trading performance of the Group and the change has been applied
retrospectively.
The separate reporting of items, which are presented as adjusting items within
the relevant category in the Consolidated Income Statement, helps provide an
indication of the Group's trading performance in the normal course of
business. The tax impact of these adjusting items is a tax credit of £47
million (2024: £31 million) as shown on the face of the Consolidated
Income Statement.
The total charge for the period is £208 million, of which £57 million
relates to a net cash inflow and £265 million was a non-cash charge.
52 weeks to Restated(1)
1 February 53 weeks to
3 February
2025
2024
£m
£m
Items as a result of acquisitions, divestments, major business changes or
restructuring:
Acquisition-related costs 9 -
Cost of Sales - Adjusting items 9 -
Items as a result of acquisitions, divestments, major business changes or
restructuring:
Acquisition-related costs 36 11
Divestment and restructuring (78) 38
Integration 5 -
Gain arising on deconsolidation(2) - (36)
Amortisation of acquired intangibles 57 49
Deferred consideration charge - 1
Impairments of tangible and intangible assets and investments:
Impairments of tangible and intangible assets and investments 112 39
Items that are unusual in nature or outside the normal course of business:
Foreign exchange movements 5 -
Administrative expenses - Adjusting items 137 102
Items that are unusual in nature or outside the normal course of business:
Put and call option charge / (credit) for the period (Note 8) 62 (6)
Finance expenses - Adjusting items 62 (6)
Impairments of loan receivables not recoverable(3) - 59
Impairment loss on financial assets - Adjusting items - 59
Adjusting items 208 155
(1) For the financial period ended 1 February 2025, the Group has
updated the adjusting items policy to include the amortisation of acquired
intangible assets.
(2) A net gain of £36 million in the prior period arose following the
deconsolidation of Sports Unlimited Retail ('SUR') after the entity entered
bankruptcy on 6 December 2023. From this point onwards the entity was no
longer under the control of JD Sports Fashion Plc and was deconsolidated.
(3) In the prior period, an impairment loss (£58 million) arose on
the loan owed by Sports Unlimited Retail to Iberian Sports Retail Group and
Sprinter Megacentros del Deporte SLU, at the time the entity entered
bankruptcy. The remaining £1 million relates to other impairments.
Acquisition-related costs
Acquisition-related costs of £45 million are mainly in respect of the Hibbett
and Courir acquisitions (£43 million) which completed in July and November
2024 respectively. £9 million of these costs are recognised within cost of
sales, being the expensing of inventory fair value uplifts, and £36 million
are recognised within administrative expenses (£30 million cash costs and £6
million non cash costs). The remaining £2 million relates to the acquisition
costs incurred in buying out the 20% non-controlling interest ('NCI') in
Mainline which completed in November 2024. Acquisition-related costs of £11
million were incurred in the prior period on the Courir acquisition.
Divestments and restructuring
During the current period, a total gain of £78 million was generated on
divestments (2024: £32 million) and nil restructuring charges (2024: £7
million) were incurred. In October 2024 the Group disposed of 21.58% of its
shareholding in Applied Nutrition. A gain of £51 million arising from the
disposal (proceeds of £73 million were received) and gain of £24 million on
revaluation of the retained investment on the date of disposal is recognised
as an adjusting item. Net gains on other disposals amounted to £3 million.
Integration costs
The integration costs of £5m are associated with the integration of the
Group's US business following the acquisition of Hibbett. This is the first
part of a significant multi-year programme to create an integrated platform
for the nationwide growth of the JD Brand and Community fascias in North
America with an efficient supply chain and back office. We are expecting this
programme to deliver at least $25m annual savings over this time frame at a
one-off cash cost of around 1x the savings delivered.
Amortisation of acquired intangibles
As disclosed in the FY24 annual report, we have extended the definition of
adjusting items to include amortisation of acquired intangibles from our
Profit before tax and adjusting items. This is a charge of £57 million in the
period. We have restated the FY24 results for this change, leading to a £49
million charge moving from administrative expenses to adjusting items within
administrative expenses.
Impairments of tangible and intangible asset and investments
The impairment of tangible and intangible assets and investments in the
current period relates to the impairment of fascia names (£3 million), a debt
owed by a joint venture partner (£4 million), the impairment of fixed assets
and closure costs (£76 million) in relation to the Derby Distribution Centre
and an impairment of right-of use assets and property, plant and equipment
(£29 million) to reflect the expected closure of 46 under-performing stores
within JD Europe following a strategic review of the European store estate.
The impairment of tangible and intangible assets in the prior period relates
to the impairment of goodwill (£12 million), fascia name (£3 million),
right‑of-use assets (£3 million), and property plant and equipment (£2
million) arising on the acquisition of Total Swimming Holdings Limited. The
charge also includes goodwill impairment prior to the divestment of GymNation
(£8 million), the impairment of the Go Outdoors fascia (£10 million) and
impairment of the goodwill and fascia names on three non-core businesses (£1
million)
Foreign exchange movements
Foreign exchange movements are losses on non-trading balances which are long
term, interest bearing, non-trading intercompany loans held by JD Plc with
foreign subsidiaries (in a foreign currency). The FX charge in FY24 was
immaterial and has not been included in the table above.
Put and call option charge / (credit) for the period
The £62 million charge is the movement in the present value of the put and
call options for the buyouts of NCI of Genesis Topco Inc (£68 million charge)
and DTLR (£6 million credit). The charge on Genesis, the company that
operates all our North America businesses and of which, the Group owns 80%, is
driven by the acquisition of Hibbett, which has been brought into the Genesis
group. In addition, there was a credit of £6 million in relation to the DTLR
option, which was revalued prior to the acquisition of the NCI which was
completed in the period.
4. Income Tax Expense
The total tax charge included in the Consolidated Income Statement consists of
current and deferred tax.
Current Income Tax
Current tax is the expected tax payable on taxable income for the financial
period, using the applicable enacted tax rates in each relevant jurisdiction.
Tax expense is recognised in the Consolidated Income Statement except to the
extent it relates to items recognised in the Consolidated Statement of
Comprehensive Income or directly in the Consolidated Statement of Changes in
Equity, in which case it is recognised in the relevant statement,
respectively.
Deferred Tax
Deferred tax is accounted for using the balance sheet liability method, by
providing for temporary differences that arise between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes. The following temporary differences are not provided
for:
· Goodwill not deductible for tax purposes.
· The initial recognition of assets or liabilities that affect
neither accounting nor taxable profit.
· Differences relating to investments in subsidiaries to the extent
that they will probably not reverse in the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset realised, based on the tax
rates that have been enacted or substantively enacted by the balance sheet
date. Deferred tax is charged or credited in the Consolidated Income
Statement, except when it relates to items charged or credited directly to the
Consolidated Statement of Changes in Equity or the Consolidated Statement of
Comprehensive Income, in which case the deferred tax is recognised in the
relevant statement, respectively.
Deferred tax assets are reviewed at each reporting date. In considering their
recoverability, the Group assesses the likelihood of them being recovered
within a reasonably foreseeable timeframe and considers the future expected
profit profile and business model of each relevant company or country,
together with any legislative restrictions on use. This approach is consistent
with that adopted for the assessment of other financial statement items, with
the recognition period based on the appropriate jurisdictional tax rules. The
estimates take account of the inherent uncertainties constraining the expected
level of profit in some territories and any associated climate-related risks
identified. Deferred tax assets and liabilities are offset against each other
when there is a legally enforceable right to offset current taxation assets
against current taxation liabilities and the intention is to settle these on a
net basis.
Tax provisions are recognised for uncertain tax positions where a risk of an
additional tax liability has been identified and it is probable that the Group
will be required to settle that tax. Measurement is dependent on management's
expectation of the outcome of decisions by tax authorities in the various tax
jurisdictions in which the Group operates. This is assessed on a case-by-case
basis using in-house tax experts, professional advisers and previous
experience.
Pillar Two Model Rules
The OECD Pillar Two GloBE Rules (Pillar Two) introduce a global minimum
corporation tax rate of 15% applicable to multinational enterprise groups with
global revenue over €750m. All participating OECD members are required to
incorporate these rules into national legislation. The Pillar Two rules
applied to the Group for its accounting period commencing 4 February 2024.
On 23 May 2023, the International Accounting Standards Board (IASB) amended
IAS 12 to introduce a mandatory temporary exception to the accounting for
deferred taxes arising from the jurisdictional implementation of the Pillar
Two model rules. On 19 July 2023 the UK Endorsement Board adopted the IASB
amendments to IAS 12.
The definition of a 'Group' requires the impact of Pillar Two to be calculated
in conjunction with that of Pentland Group Holdings Limited and its
subsidiaries ('the Pentland Group'). The Group is working with the Pentland
Group to ensure it will be compliant.
The Group has performed an assessment of its exposure to Pillar Two income
taxes and the Pillar Two current tax charge for the period ended 1 February
2025 is approximately £0.3m (this excludes any liability of the wider
Pentland Group).
The Group is adopting the mandatory temporary exception from the recognition
and disclosure of deferred taxes arising from the jurisdictional
implementation of the Pillar Two model rules. The Group does not meet the
threshold for application of the Pillar One transfer pricing rules.
52 weeks to 53 weeks to
3 February
1 February
2024
2025 £m
£m
Current tax
UK corporation tax at 25.0% (2024: 24.0%) 213 222
Adjustment relating to prior periods (17) (6)
Total current tax charge 196 216
Deferred tax
Deferred tax (origination and reversal of temporary differences) (23) (3)
Adjustment relating to prior periods 2 (7)
Total deferred tax (credit)/charge (21) (10)
Income tax expense 175 206
52 weeks to
1 February 53 weeks to
3 February
2025
2024
£m £m
Profit before tax multiplied by the standard rate of corporation tax 25.0%(1) 179 195
(2024: 24.0%)
Effects of:
Expenses not deductible(2) 15 31
Put and call option movement not deductible(3) 16 (3)
Depreciation and impairment of non-qualifying non-current assets(4) 3 2
Utilisation of previously unrecognised tax losses(5) - (1)
Non-taxable income(6) (23) (21)
Effect of tax rates in foreign jurisdictions(7) (14) (10)
Research and development tax credits and other allowances(8) (5) (5)
Adjustments related to prior periods(9) (15) (13)
Other differences in tax rate(10) - 1
Non-qualifying impairment of goodwill on consolidation(11) - 2
Change in unrecognised temporary differences(12) 4 13
Other taxes due(13) 15 15
Income tax expense 175 206
(1) The standard rate of corporation tax for the period is 25%, the UK
mainstream tax rate.
(2) Certain legal and professional fees, together with the losses
incurred on the divestment of non-core businesses in the current period, are
not deductible for tax purposes.
(3) The movements in the put and call options per Note 8 are not
deductible for tax.
(4) The depreciation adjustment relates to UK assets which are not
eligible for capital allowances.
(5) Following a return to profitability of certain Group subsidiaries in
the prior period, brought forward losses were utilised and a deferred tax
asset recognised in respect of any remaining losses.
(6) Non-taxable gain on the sale of shares in associates.
(7) A proportion of the Group's profits arise outside of the UK and are
taxed at the prevailing tax rate.
(8) R&D and general business tax credits have been claimed in the US
and Spain.
(9) The prior period adjustment reflects net current and deferred tax
movements between Group reporting provisions and submitted returns.
(10) The adjustment reflects the difference between the deferred tax rate
and corporate income tax rate.
(11) The impairment of goodwill on consolidation and investments in
associates are non-deductible for corporate income tax purposes and does not
attract deferred tax.
(12) The adjustment represents losses created in the period for which no
deferred tax asset has been recognised, due to a lack of certainty over future
taxable profits arising.
(13) Other taxes due are primarily in respect of US state taxes but also
includes local taxes payable in other overseas jurisdictions. In the current
period, this includes £0.3m of top up tax under the OECD Pillar Two GloBE
Rules relating to operations in Ireland and Hungary.
In accordance with IAS 12, UK deferred tax has been recognised at the enacted
rate of 25% at the balance sheet date. Deferred tax is recognised at the local
enacted rate for overseas territories.
The Consolidated Statement of Financial Position shows the position after the
legally enforceable right of offset. This results in an asset of £32 million
(2024: £24 million) and a liability of £155 million (2024: net liability
£90 million) in the Consolidated Statement of Financial Position. This
reflects the net position of £123 million liability (2024: £66 million
liability).
5. Earnings Per Ordinary Share
Basic and Adjusted Earnings Per Ordinary Share
The calculation of basic earnings per ordinary share at 1 February 2025 is
based on the profit for the period attributable to equity holders of the
parent of £490 million (2024: £539 million) and a weighted average number of
ordinary shares outstanding during the 52 week period ended 1 February 2025
of 5,159,697,637 (2024: 5,158,135,745).
There have been no other transactions involving ordinary shares or potential
ordinary shares in the period.
Adjusted basic earnings per ordinary share have been based on the profit for
the period attributable to equity holders of the parent for each financial
period but excluding the post-tax effect of adjusting items. The Directors
consider that this gives a more useful measure of the trading performance and
profitability of the Group.
52 weeks to 53 weeks to
1 February 3 February
2025 2024
millions millions
Issued ordinary shares at beginning and end of period 5,183 5,183
52 weeks to Restated(1)
1 February 53 weeks to
2025 3 February
£m 2024
£m
Profit for the period attributable to equity holders of the parent 490 539
Adjusting items attributable to equity holders of the parent (1)(2) 194 149
Tax relating to adjusting items attributable to equity holders of the (45) (29)
parent(1)
Profit for the period attributable to equity holders of the parent excluding 639 659
adjusting items
millions millions
Weighted average number of ordinary shares at end of the period (basic) 5,160 5,158
Dilution - Effect of potentially dilutive share options and awards - -
Weighted average number of ordinary shares at the end of the period (diluted) 5,160 5,158
Basic earnings per ordinary share 9.50p 10.45p
Diluted earnings per ordinary share 9.50p 10.45p
Adjusted basic earnings per ordinary share - restated(1) 12.39p 12.81p
Adjusted diluted earnings per ordinary share - restated(1) 12.39p 12.81p
(1) See Note 3 for further details of the restatement.
(2) Adjusting items and associated tax attributable to the equity
holders of the parent only.
6. Acquisitions
Business Combinations
The Group accounts for business combinations using the acquisition method when
control is transferred to the Group. The Group controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect the returns through its power over the
entity.
Costs related to the acquisition, other than those associated with the issue
of debt or equity securities, that the Group incurs in connection with a
business combination are expensed within adjusting items as incurred.
The consideration transferred in the acquisition is measured at fair value, as
are the identifiable net assets acquired. Any goodwill that arises is tested
annually for impairment; however, any resulting impairment will not be tax
deductible. The consideration transferred does not include amounts related to
the settlement of pre-existing relationships. Such amounts are generally
recognised in the Consolidated Income Statement.
Any contingent consideration is measured at fair value at the date of
acquisition. If an obligation to pay contingent consideration that meets the
definition of a financial instrument is classified as equity, then it is not
remeasured, and the settlement is accounted for within equity. Otherwise,
subsequent changes in the fair value of the contingent consideration are
recognised in the Consolidated Income Statement.
Current Period Acquisitions
Acquisition of Hibbett, Inc. (100%)
On 25 July 2024, the Group acquired, via its existing subsidiary Genesis
Holdings, Inc., 100% of the issued share capital of Hibbett, Inc. ('Hibbett')
for total cash consideration of $1,077 million (£835 million). The Genesis
Holdings Group has a material 20% non-controlling interest.
Headquartered in Birmingham, Alabama, Hibbett is a leading sports
fashion-inspired retailer with 1,179 stores, as of 25 July 2024, located in
communities in 36 states across the US. Hibbett has been serving customers for
more than 75 years with convenient locations, personalised customer service
and access to leading brands across footwear, apparel and accessories. The
acquisition expands on the Group's presence in the US market.
As part of the acquisition method of accounting, the assets and liabilities of
Hibbett have been converted from US generally accepted accounting principles
(GAAP) to IFRS Accounting Standards as adopted by the Group.
The table below sets out the identifiable net assets attributable to the
acquisition of Hibbett as of the acquisition date and includes the effects of
adjustments on the acquisition date balance sheet made during the measurement
period and detailed below.
Book Value Measurement Provisional fair
£m adjustments value at
£m 25 July
2024
£m
Acquiree's net assets at acquisition date:
Non-Current Assets
Intangible assets - fascia name 19 156 175
Intangible assets - other 7 - 7
Property, plant and equipment 140 43 183
Right of Use Assets 221 20 241
Other Assets 16 (11) 5
Current Assets
Inventories 292 (2) 290
Cash and cash equivalents 24 - 24
Trade and other receivables 15 (5) 10
Prepayments 16 (2) 14
Income Tax 9 - 9
Current Liabilities
Trade and other payables - current (142) (2) (144)
Lease Liability - current (53) 12 (41)
Interest bearing loans - current (36) - (36)
Non-Current Liabilities
Trade and other payables - non-current (3) - (3)
Lease Liability - non-current (203) 8 (195)
Deferred Tax Liability (4) (51) (55)
Net identifiable assets 318 166 484
Goodwill on acquisition 351
Total consideration 835
The excess of consideration paid over the fair value of the net assets on
acquisition of £351 million represents goodwill that reflects the market
position of the business, the assembled workforce, the potential future growth
opportunities from existing and new retail stores, and cost synergies across
our North American businesses. The goodwill has been allocated to the
Community operating segment which is in line with where the value is expected
to be recovered. The goodwill is not deductible for tax purposes at the
consolidated level.
Measurement adjustments
Additional intangible assets of £156 million have been recorded in relation
to the acquisition with total intangible assets of £175 million representing
the fair value of fascia names acquired. Fascia names have been valued using
the relief from royalty method. The basic tenet is that without ownership of
the subject intangible asset, the user of that intangible asset would have to
make a stream of payments to the owner of the asset in return for the rights
to use that asset. By acquiring the intangible asset, the user avoids these
payments. A royalty rate of 2.5% has been used based on a comprehensive
benchmarking exercise performed.
Deferred tax liabilities of £51 million have been recognised in relation to
intangible assets. Further fair value adjustments of £61 million have been
made to the acquisition date balance sheet of Hibbett. This amount includes a
£43 million increase in the value of property, plant and equipment and a £2
million reduction in the value of inventory.
In addition, lease liabilities have been remeasured as if the acquired leases
were a new lease at the acquisition date resulting in a decrease in the lease
liability (current and non-current) of £20 million. This decrease in the
liability arises due to i) the application of a discount rate determined in
accordance with IFRS 16 at the acquisition date and ii) alignment with the
Group's IFRS 16 accounting policy whereby charges for non-lease service
components are recognised directly in the Consolidated Income Statement. Under
its previous US GAAP accounting policy, Hibbett elected to combine non-lease
service components with a lease component and account for them as part of its
fixed asset payments thus including them in the measurement of the lease
liability.
The associated right of use asset is remeasured on acquisition at an amount
equal to the recognised lease liability and then adjusted to reflect the
favourable or unfavourable terms of the lease, relative to market terms.
The measurement difference in relation to prepayments and other assets
reflects a difference in the accounting treatment of capitalised software
development costs between the accounting policies of the Group and those
policies previously applied by Hibbett under US GAAP. Under US GAAP, Hibbett
capitalised certain costs relating to the configuration of cloud computing
arrangements. Under the Group's accounting policy, directly attributable
software development costs in relation to the configuration and customisation
of cloud computing arrangements are only capitalised to the extent they give
rise to an asset controlled by the Group. The Group has conducted an
assessment and identified £9 million of costs, capitalised as other assets
and prepayments under US GAAP at the date of acquisition, which would not be
capitalised under IFRS. As a result, an adjustment has been made to the
opening balance sheet to reduce prepayments by £2 million and other assets by
£7 million with a corresponding increase to goodwill. The remaining £4
million decrease to other assets represents a reversal of a deferred tax asset
no longer recognised.
The trade and other receivables acquired of £10 million, net of provision,
are expected to be recovered in full. The gross trade and other receivables
acquired amounted to £10 million.
Currently all balances remain provisional and will be finalised in the next
accounting period. These balances remain provisional due to outstanding
relevant information in regard to facts and circumstances that existed as of
the acquisition date and/or where valuation work is still being finalised.
Included in the 52 week period ended 1 February 2025, was revenue of £713
million and a profit before tax and adjusting items of £36 million
in respect of Hibbett.
Acquisition costs amounting to £28 million related to the acquisition of
Hibbett by the Group have been recognised within adjusting items in the
Consolidated Income Statement. £19 million of these costs are cash costs of
acquisition with £9 million representing non cash costs of fair value uplifts
post acquisition. See Note 3 for further information.
Acquisition of Groupe Courir S.A.S (100%)
On 26 November 2024, the Group acquired, via its existing subsidiary JD France
100% of the issued share capital of Groupe Courir S.A.S ('Courir') for total
cash consideration of €391.5 million (£326 million).
Courir is a market leader in sneakers in France, which is the largest sneaker
market in Europe, and this acquisition reinforces the Group's position within
Europe. Courir has 323 stores as of 26 November 2024, bannered as Courir
across France, Spain, Belgium, the Netherlands, Portugal and Luxembourg. In
addition, there are a further 36 stores which trade under franchise agreements
as Courir in North West Africa, Middle East and French overseas territories.
Further, there are three stores which trade as Naked, an elevated concept for
women's sneakers.
The table below sets out the identifiable net assets attributable to the
acquisition of Courir as of the acquisition date and includes the effects of
adjustments on the acquisition date balance sheet made during the measurement
period and detailed below.
Book Value Measurement Provisional fair
£m adjustments value at
£m 26 November
2024
£m
Acquiree's net assets at acquisition date:
Non-Current Assets
Intangible assets - fascia name 49 39 88
Intangible assets - other 16 (15) 1
Legacy Goodwill 127 (127) -
Property, plant and equipment 22 9 31
Right of Use Assets 156 - 156
Other Non current Assets 6 - 6
Current Assets
Inventories 117 5 122
Trade and other receivables 18 - 18
Cash and cash equivalents 52 - 52
Deferred Tax Asset 5 (2) 3
Current Liabilities
Trade and other payables - current (89) - (89)
Interest bearing loans - current (33) - (33)
Lease liabilities - current (26) - (26)
Liabilities held-for-sale (7) - (7)
Non-Current Liabilities
Interest bearing loans - non-current (184) 19 (165)
Lease liabilities - non-current (125) - (125)
Provision - non-current (7) - (7)
Deferred Tax Liability (1) (22) (23)
Net identifiable assets 96 (94) 2
Goodwill on acquisition 324
NCI - Naked -
Total consideration 326
The excess of consideration paid over the fair value of the net assets on
acquisition of £324 million represents goodwill that reflects the market
position of the business, the assembled workforce, the potential future growth
opportunities from existing and new retail stores. The goodwill is not
deductible for tax purposes at the consolidated level.
Measurement adjustments
The Courir fascia name has been valued at £88 million, resulting in a £39
million uplift to the book value of £49 million.
The measurement difference in relation to Intangible assets also reflects a
difference in the accounting treatment of capitalised software development
costs between Courir and the Group. Capitalisation of cloud computing is
judgemental. While Courir capitalised certain costs relating to the
configuration of cloud computing arrangements, under the Group's accounting
policy, directly attributable software development costs in relation to the
configuration and customisation of cloud computing arrangements are only
capitalised to the extent they give rise to an asset controlled by the Group.
The Group has conducted an assessment and identified £15 million of costs,
capitalised previously as intangible assets at the date of acquisition, which
would not be capitalised under the accounting policies followed by the group.
As a result, an adjustment has been made to the opening balance sheet to
reduce Intangible assets by £15 million with a corresponding increase to
goodwill.
Further fair value adjustments of £10 million have been made to the
acquisition date balance sheet of Courir. This amount includes a £9 million
increase in the value of property, plant and equipment and a £5 million
increase in the value of inventory. Deferred tax liabilities of £22 million
have been recognised in relation to the fair value adjustments set out above.
In addition, as a result of the transaction, deferred tax assets of £2
million are no longer considered recoverable and so have been derecognised.
The gross trade and other receivables acquired amounted to £18 million and
are expected to be recovered in full. As a result no provision has been
recorded. At the date of acquisition, liabilities held for sale amounted to
£7 million relating to lease liabilities on the 21 stores sold to Snipes.
Trade and other payables included a liability for convertible bonds of £19
million, which had been issued by Courir to its previous shareholders. As part
of the consideration for the acquisition (£326 million), the group also
acquired the convertible bonds and the liability was written off with a
corresponding impact to goodwill.
Currently all balances remain provisional and will be finalised in the next
accounting period. These balances remain provisional due to outstanding
relevant information in regard to facts and circumstances that existed as of
the acquisition date and/or where valuation work is still being finalised.
Included in the 52-week period ended February 1, 2025 was revenue of £139
million and a profit before tax and adjusting items of £9 million in respect
of Courir.
Acquisition costs amounting to £15 million related to the acquisition of
Courir by the Group have been recognised within adjusting items in the
Consolidated Income Statement.
Current Period Acquisitions - Acquisition of Non-Controlling Interests
Acquisition of the Non-Controlling Interest in Sport Zone Canaries (40%) and
JD Canaries (10%)
On 8 April 2024, JD Spain Sports Fashion 2010 SL acquired the 10% minority
shareholding in JD Canary Islands Sports SL, ('JD Canary') and SDSR - Sports
Division SR, S.A. ('Sport Zone Portugal') acquired the 40% minority
shareholding in Sport Zone Canarias (SL). Total consideration for both
shareholdings was €20 million (£17 million). The JD Canary acquisition
aligns with the JD Brand First strategy, whilst the Sport Zone Portugal
acquisition promotes the JD Complementary Concepts. As the step-up acquisition
in April 2024 does not result in a change of control, this has been accounted
for as an equity transaction.
Acquisition of the Non-Controlling Interest in DTLR Villa LLC (1.155%)
On 15 July 2024, JD acquired 1.018% of the remaining 1.155% issued share
capital in its existing subsidiary DTLR Villa LLC for cash consideration of $9
million (£7 million). On 19 July 2024 JD acquired the remaining 0.137% issued
share capital of DTLR Villa LLC for cash consideration of $1 million (£1
million). The Group now owns 100% of the issued share capital of DTLR Villa
LLC. In accordance with IFRS 10, the Group had previously assessed and
concluded that it controlled the subsidiary. As the step-up acquisition in
July 2024 does not result in a change of control, this has been accounted for
as an equity transaction.
Acquisition of the Non-Controlling Interest in JD Gyms
On 28 October 2024, JD Sports Fashion plc acquired a further 2.5% minority
shareholding in JD Sports Gyms Limited. Total consideration was £5 million.
JD now owns 97.5% of JD Sports Gyms. As the step-up acquisition in October
2024 does not result in a change of control, this has been accounted for as an
equity transaction. Due to the step-up acquisition, the obligation to provide
services was deemed to no longer exist and the related liability of £4m was
subsequently derecognised in equity.
Acquisition of the Non-Controlling Interest in Mainline Menswear
On 27 September 2024, the Group acquired the 20% minority shareholding in
Mainline Menswear Limited for a total £17 million consideration, including
£9 million deferred consideration, which has been accounted for under IAS 19
as a service cost. JD now owns the full 100% shareholding in Mainline. Please
see Held-for-sale Note 12 for further details. As the step-up acquisition in
September 2024 does not result in a change of control, this has been accounted
for as an equity transaction.
The table below presents the amounts recognised within retained earnings and
non-controlling interest in the statement of changes in equity during the
period:
Retained earnings Non-controlling interest Total
£m £m £m
DTLR 4 4 8
JD Sports Gyms (2) 2 -
JD Canaries 2 1 3
Mainline 3 5 8
Sport Zone Canaries 10 4 14
Total Consideration 17 16 33
7. Divestments
Current Period Divestments - Applied Nutrition
The Group had an equity interest in a single associate, Applied Nutrition
Limited ('Applied Nutrition'). On 7 May 2021, the Group acquired a 32%
ownership interest in, and had significant influence over, Applied Nutrition.
Applied Nutrition is a sports nutrition brand which operates via wholesale
activities and a trading website.
On 24 October 2024, Applied Nutrition undertook an initial public offering and
admitted its entire issued ordinary share capital, consisting of 250,000,000
shares, to the London Stock Exchange plc's main market for listed securities.
The Group disposed of 21.58% of its shareholding in Applied Nutrition on 24
October 2024 for net proceeds of £73 million. At 1 February 2025 the Group
holds 9.78% ownership in Applied Nutrition.
On disposal of its 21.58% shareholding, the Group ceased to hold significant
influence over Applied Nutrition and has de-recognised its investment in
associate. The remaining 9.78% is accounted for as a financial asset under
IFRS 9. The fair value of the retained interest was £34 million.
A gain of £51 million arising from the disposal and gain on revaluation of
the retained investment on the date of classification amounting to £24
million is recognised in profit and loss as an adjusting item included in
'Divestment and restructuring' line.
Current Period Divestments - Non-Significant Divestments
On 16 October 2024, the group disposed of Total Swimming Holdings Limited (60%
equity interest) including its subsidiaries for total consideration of £11
million. The non-controlling interest at disposal was £1.4 million. The gain
on disposal net of disposal costs is £14 million.
On 20 November 2024, the Group disposed of its 49% equity interest
shareholding in a joint venture, PT JD Sports Fashion Indonesia ('JD
Indonesia'), for cash consideration of £6 million. The loss on disposal net
of disposal costs is £1 million.
On 28 July 2024, the Group disposed of Gym King Limited (40% equity interest)
a fixed asset investment in a joint venture for cash consideration of £2
million. The loss on disposal net of disposal costs is £1 million.
On 7 March 2024, the Group disposed of Bodytone Limited (50.1% equity
interest) for cash consideration of €2 million (£2 million). The
non-controlling interest at disposal was £3.6 million. The loss on disposal
net of disposal costs is £1 million.
The total net gain on divestments of £11 million is offset with an £8
million loss on divestments and restructuring of non-core group companies from
the prior year.
The total gain on non-significant divestments amounts to £3 million.
8. Put and Call Option Liabilities
Put and call options are in place over all or part of the remaining
non-controlling interest shareholding in various subsidiaries. The Group
recognises put and call options over non-controlling interests in its
subsidiary undertakings as a liability in the Consolidated Statement of
Financial Position at the present value of the estimated exercise price of the
put and call option. The only material put and call option remaining as at
1 February 2025 is Genesis at £831 million (2024: Genesis £763 million).
The Group has used a third-party valuation expert to estimate the present
value of the Group's material put and call option liabilities using a
Monte-Carlo simulation model, applying a geometric Brownian motion to project
the share price and an arithmetic Brownian motion for the projection of
EBITDA. The option formula and multiple are stated in the option agreement
allowing the strike price to be calculated from the simulated EBITDA. Upon
initial recognition of put and call options, a corresponding entry is made to
Other Equity (put and call option reserve), and for subsequent changes on
remeasurement of the liability the corresponding entry is made to adjusting
items in the Consolidated Income Statement.
Inputs to the Monte-Carlo simulation models
The Group has used the Board approved 5-year plan to estimate profit and cash
flow forecasts for future periods.
In estimating the present value of the Group's material put and call option
liabilities, the key inputs to the Monte-Carlo simulation models are:
· The EBITDA forecasts and growth assumptions for future periods
including forecast net cash/debt and forecast capital expenditure, working
capital movements and taxation.
· The EBITDA is projected using an Arithmetic Brownian Motion
EBITDA drift. The drift for each time period is estimated from forecast
EBITDA and its standard deviation is estimated from historical EBITDA data.
· The risk-free discount rates, reflecting the current market
assessment of the time value of money, used to discount the purchase price
(subject to the option pricing cap as defined in the shareholder agreement) to
present value.
Other Options
Within other options the largest value option at FY25 is Cosmos £25 million
(2024 £24 million). Management has used a third party valuation specialist
to value the option. The valuation technique is consistent with that outlined
above for material options. The remaining options are valued in house, and
total £1 million (2024: £47 million). During the year £15m of options have
lapsed, partly due to the NCI being acquired outside of the option mechanics,
and partly due to the divestment of entities where put and call options were
held.
Iberian Sports Genesis Topco Inc Marketing Other Total
Retail Group ('Genesis') Investment Group £m Liability
('ISRG') £m S.A.
£m ('MIG')
£m
At 28 January 2023 206 783 52 63 1,104
Acquisitions 429 - - - 429
Options lapsed and disposed during the period (197) - - (5) (202)
Other movements - - - (13) (13)
Options bought out (434) - (68) - (502)
(Decrease)/increase in the present value of (4) (20) 16 2 (6)
the existing option liability
At 3 February 2024 - 763 - 47 810
Options lapsed and disposed during the period - - - (15) (15)
(Decrease)/increase in the present value of - 68 - (6) 62
the existing option liability
At 1 February 2025 - 831 - 26 857
Sensitivity Analysis - Genesis Put and Call Option
Sensitivity analysis was performed over the key variable inputs to the
valuation of the Genesis put and call option. The key variable input was
determined to be the EBITDA forecasts per the Board approved 5-year plan. 10%
was determined to be a reasonably possible change for the EBITDA forecasts
included in the approved cash flow forecasts, reflecting recent experience in
levels of forecasting accuracy.
The result was that:
- A reduction of 10% to the forecast EBITDA would result in a
reduction to the put and call option liability of £104 million (2024: £92
million).
- An increase of 10% to the forecast EBITDA would result in an
increase to the put and call option liability of £92 million (2024: £92
million).
Option Details
Company Options in existence Exercise periods Methodology Maximum price Short-term EBITDA growth assumptions(1) Discount rate applied Recognised at
1 February
2025
£m
Genesis Topco Inc. Put option whereby JD Sports Fashion Plc may be required to acquire the The put options are exercisable within 30 calendar days after the The option price is calculated based on a multiple of earnings before The option price shall not exceed £1.46 billion. 8.2% - 16.7% (2024: 6.4%-12.5%) 3.91% - 4.37% (2024: 3.3% - 4.8%) 831
remaining 20% of the issued share capital of Genesis Topco determination of the final put/call value for the financial period. The first interest, tax, depreciation and amortisation for the relevant financial
put period will occur after the determination of the put/call value for the period, less post-closing cash and debt.
Inc in four equal tranches with the ability to roll over a tranche that has financial period ending on 1 February 2025.
not previously been subject to the exercise of a put option.
The final put option can be exercised within a period of 30 calendar days
after the end of the fiscal period ending 1 February 2028.
Other put option liabilities 26
Total liability 857
(1) FY26 of the forecast includes the first full year impact of the
Hibbett acquisition.
Post Balance Sheet Event
In March 2025, an amendment was made to the Genesis shareholders' agreement.
Under the revised terms, the exercise periods for the Non-Controlling Interest
(NCI) put option and the JD call options have been deferred and could be paid
in two equal instalments of 10% with two exercise periods, as opposed to the
previous agreement of four equal instalments of 5% with four exercise periods.
Any option tranche can be deferred into the following exercise period, in line
with the previous agreement. Additionally, there has been no other changes to
key terms in the agreement, other than the exercise periods noted above.
See Note 14 for further details.
9. Dividends
Dividend distribution to the Company's shareholders is recognised as a
liability in the Group and Company financial statements in the period in which
it is approved.
After the reporting date, the following dividend was proposed by the Directors
and will be payable to all shareholders on the register at 13 June 2025. The
dividend will be paid on 11 July 2025. The dividends were not provided for at
the reporting date.
52 weeks to 53 weeks to
1 February 3 February 2024
2025 £m
£m
0.67 pence per ordinary share (2024: 0.60 pence) 35 31
Dividends on Issued Ordinary Share Capital
52 weeks to 53 weeks to
1 February 3 February 2024
2025 £m
£m
Final dividend of 0.60 pence (2024: 0.67 pence) per qualifying ordinary share 31 35
paid in respect of prior period, but not recognised as a liability in that
period
Interim dividend of 0.33 pence (2024: 0.30 pence) per qualifying ordinary 17 15
share paid in respect of current period
48 50
10. Analysis of Net Debt
Net debt consists of cash and cash equivalents together with other borrowings
from bank loans and overdrafts, other loans, loan notes, lease liabilities and
similar hire purchase contracts.
At On Cash flow FX Lease At 1
3 February acquisition & £m movement additions, February
2024 disposal of £m terminations, 2025
£m subsidiaries, modifications
associates &
and NCIs reassessments
£m £m
Cash and cash equivalents 1,153 76 (498) - - 731
Overdrafts (60) - 24 - - (36)
Cash and cash equivalents 9 - (9) - - -
held-for-sale ((1))
Cash and cash equivalents for the 1,102 76 (483) - - 695
purposes of the Consolidated Statement
of Cash Flows
Bank loans (70) (228) (364) 19 - (643)
Lease liabilities (2,484) (381) 420 12 (626) (3,059)
Total liabilities from financing activities (2,554) (609) 56 31 (626) (3,702)
Net (debt)/cash (1,452) (533) (427) 31 (626) (3,007)
(1) See Note 12 for details of assets held-for-sale.
At On Cash flow FX Lease At 3
28 January acquisition & £m movement additions, February
2023 disposal of £m terminations, 2024
£m subsidiaries, modifications
associates &
and NCIs reassessments
£m £m
Cash and cash equivalents 1,508 - (327) (28) - 1,153
Overdrafts (34) - (26) - - (60)
Cash and cash equivalents 75 - (66) - - 9
held-for-sale
Cash and cash equivalents for the 1,549 - (419) (28) - 1,102
purposes of the Consolidated Statement
of Cash Flows
Bank loans (80) 5 6 (1) - (70)
Lease liabilities (2,384) 55 400 41 (596) (2,484)
Total liabilities from financing activities (2,464) 60 406 40 (596) (2,554)
Net (debt)/cash (915) 60 (13) 12 (596) (1,452)
In addition to the liabilities included in the table above, the Group has
accrued put and call option liabilities at 1 February 2025 of £857 million
(2024: £810 million), which are not classified as net debt in the note above.
11. Cash flows from operating activities
52 weeks to Restated(1)
1 February 53 weeks to 3 February
2025 2024
£m £m
Cash flows from operating activities
Profit for the period 540 605
Adjustments for:
Income tax expense 175 206
Finance expenses (non-adjusting) 153 102
Finance expenses (adjusting) 62 (6)
Financial income (27) (39)
Depreciation and amortisation of non-current assets 729 615
Depreciation and amortisation of non-current assets (adjusting) 57 49
Share based payment charge 1 3
Loss on disposal of non-current assets 18 8
Profit on disposal of subsidiaries/associates/joint ventures (adjusting) (81) -
Gain on FX forward contracts (recorded in Cost of sales) (10) (17)
Impairment of other intangibles and non-current assets (non-adjusting) 12 22
Impairment of goodwill and fascia names (adjusting) 5 35
Impairment of other intangibles and non-current assets (adjusting) 108 4
Other non-cash adjusting items 24 69
Share of profit of equity-accounted investees (net of tax) (5) (8)
Profit before working capital changes 1,761 1,648
(Increase) in inventories (10) (196)
Decrease/(increase) in trade and other receivables 32 (36)
(Decrease)/increase in trade and other payables (159) 35
Cash generated from operations 1,624 1,451
(1) For the financial period ended 1 February 2025, the Group has
updated the adjusting items policy to include the amortisation of acquired
intangible assets. Please refer to Note 3 for further details of the
restatement.
12. Assets held-for-sale
Derby Distribution Centre
During the year, the Group closed a distribution centre in Derby, as part of
its strategic operational restructuring. As at 1 February 2025, the
distribution centre met the criteria to be classified as held for sale in
accordance with IFRS 5 Non-current Assets Held-for-Sale.
Management is committed to a plan to sell the asset and an active programme to
locate a buyer and complete the sale has been initiated. The sale is expected
to be completed within 12 months from the reporting date.
Accordingly, the carrying amount of the right of use asset of £42 million has
been reclassified from right of use assets to non-current assets
held-for-sale. Depreciation ceased on the date of classification. Lease
liabilities of £50 million were also reclassified to non current liabilities
held-for-sale.
An impairment loss of £69 million was recognised on reclassification of plant
and equipment as the carrying amount of £84 million exceeded fair value less
costs to sell. Estimated fair value less costs to sell is £15 million.
Mainline Menswear Holdings Limited
The assets related to Mainline Menswear Limited are no longer recorded as
assets held-for-sale. The marketing process ceased in late June 2024 as none
of the interest parties was considered suitable. The non-controlling interest
of 20% was purchased by the Group in October 2024 for total consideration of
£17 million, which includes £9 million deferred consideration contingent
upon the ongoing employment of the former shareholder for an agreed period.
At 1 February 2025, Mainline Menswear Limited is wholly owned by the Group.
Included in the 53 week period ended 3 February 2024 was revenue of £75
million and a profit before tax of £11 million in respect of Mainline
Menswear Holdings and its subsidiaries. Details are provided in the table
below.
As at
3 February
2024
£m
Intangible assets 8
Property, plant and equipment 1
Right-of-use assets -
Inventories 14
Trade and other receivables 2
Income tax receivable -
Cash and cash equivalents 9
Assets held-for-sale 34
Lease liabilities -
Trade and other payables (8)
Liabilities held-for-sale (8)
13. Contingent Liabilities
Accounting policies
Contingent liabilities are potential future cash outflows, where the
likelihood of payment is considered more than remote but is not considerable
probable or cannot be fully measured.
Claims and Litigation
The activities of the Group are overseen by regulators around the world and,
whilst the Group strives to ensure full compliance with all its regulatory
obligations, periodic reviews are inevitable, which may result in a financial
penalty. If the risk of a financial penalty arising from one of these reviews
is more than remote but not probable or cannot be measured reliably then the
Group will disclose this matter as a contingent liability. If the risk of a
financial penalty is considered probable and can be measured reliably then the
Group would make a provision for this matter.
The Group had no material contingent liabilities at 1 February 2025 (2024:
none).
14. Post Balance Sheet Events
Genesis Put and Call Amendment
In March 2025, an amendment was made to the Genesis shareholders' agreement.
Under the revised terms, the exercise periods for the Non-Controlling Interest
(NCI) put option and the JD call options have been deferred and will now be
paid in two equal instalments of 10% with two exercise periods, as opposed to
the previous agreement of four equal instalments of 5%.
The first exercise period for the options will now occur following the
financial year ending in 2029, and the second exercise period will be
following the financial year ending in 2030. As a result of this change, the
current portion of the liability will be presented as non-current at FY26.
The method for calculating the option price remains unchanged and continues to
be based on a multiple of earnings before interest, tax, depreciation, and
amortisation (EBITDA) for the relevant financial period, adjusted for
post-closing cash and debt. The cap on the total liability remains unchanged
at £1.5bn.
Based on a risk-free discount rate, in accordance with accounting standards
for valuing this liability, the Genesis put/call valuation present value is
expected to increase by approximately £250 million. If JD North America's
WACC rate were to be used (see Note 13) as the discount rate, the present
value of the liability is broadly unchanged as a result of the deferral.
Share Buyback
As announced on 9 April 2025, the company has commenced an initial share
buyback programme to repurchase ordinary shares with a market value of up to
£100 million. The purpose of the programme is to reduce share capital and,
accordingly, the shares repurchased are subsequently cancelled or held in
treasury. The programme will complete no later than 31 July 2025.
Alternative Performance Measures
The Directors measure the performance of the Group based on a range of
financial measures, including measures not recognised by UK-adopted
International Accounting Standards. These Alternative Performance Measures may
not be directly comparable with other companies' Alternative Performance
Measures and the Directors do not intend these to be a substitute for, or
superior to, IFRS measures. The Directors believe that these Alternative
Performance Measures assist in providing additional useful information on the
trading performance of the Group. Alternative Performance Measures are
also used to enhance the comparability of information between reporting
periods, by excluding adjusting items.
Adjusted Basic Earnings per Share
Adjusted basic earnings per ordinary share has been based on the profit for
the period attributable to equity holders of the parent for each financial
period but excluding the post-tax effect of adjusting items. A reconciliation
between basic earnings per share and adjusted basic earnings per share
is shown below:
2025 Restated ((1))
2024
Basic earnings per share per Note 5 9.50p 10.45
Adjusting items 3.76p 2.92
Tax relating to adjusting items (0.87p) (0.56)
Adjusted basic earnings per ordinary share 12.39p 12.81
(1) See Note 3 for further details of the restatement.
Adjusting Items
The Group exercises judgement in assessing whether items should be classified
as adjusting items. This assessment covers the nature of the item, cause of
occurrence and scale of impact of that item on the reported performance. In
determining whether items should be presented as adjusting items, the Group
considers items that are significant because of either their size or their
nature which management believe would distort an understanding of earnings if
not adjusted. In order for an item to be presented as an adjusting item, it
should typically meet at least one of the following criteria:
· Impairments of tangible and intangible assets, investments and
loan receivables not recoverable
· Unusual in nature or outside the normal course of business (for
example, the non-cash movement in the present value of put and call options,
and foreign currency movements on non-trading intercompany balances)
· Items directly incurred as a result of either an acquisition, an
anticipated acquisition or a divestment, or arising from a major business
change or restructuring programme (including the amortisation of acquired
intangible assets, see below for further detail).
For the financial period ended 1 February 2025, the Group has updated the
adjusting items policy to include the amortisation of acquired intangible
assets. This update is intended to provide greater clarity over the underlying
trading performance of the Group and the change has been applied
retrospectively.
The separate reporting of items, which are presented as adjusting items within
the relevant category in the Consolidated Income Statement, helps provide an
indication of the Group's trading performance in the normal course of
business. An explanation as to why individual items have been classified as
adjusting is given in Note 3.
Furthermore, Alternative Performance Measures excluding adjusting items are
intended to enhance the comparability of information between reporting periods
and to help to provide an indication of the Group's trading performance.
Capital Expenditure
Capital Expenditure is the measure of total cash invested each period to
maintain or build new retail fascias, logistics infrastructure, or technology
assets. This investment is in the ongoing business and is invested to deliver
growth in organic sales or improvements in gross profit or operating profit.
This APM is therefore useful to understand the investment the company is
making in its ongoing assets for which a return on investment is expected in
the future.
This measure excludes other items within net cash used in investing activities
in the cashflow statement as these are not related to investments in the
ongoing business, but to acquisitions, investments or disposals of
subsidiaries or joint ventures, proceeds of sale of non current assets or
interest received. This APM has been updated in FY25 to reflect the capital
expenditure associated with intangibles and property, plant and equipment
only. In FY24 this included capital expenditure of other non-current assets
which management consider less relevant.
The table below details the cashflow expenditure on capital investment as
detailed in the Consolidated Statement of Cash Flows.
2025 2024
£m £m
Acquisition of intangibles (software development) 28 30
Acquisition of property, plant and equipment 487 500
Total capital expenditure 515 530
An alternative presentation of this is as follows:
2025 2024
£m £m
Stores & gyms 346 309
Supply chain infrastructure 110 151
Technology and other 59 70
Total capital expenditure 515 530
Effective Tax Rate Before Adjusting Items
Being the adjusted tax charge as a percentage of the adjusted profit before
tax as outlined in the Consolidated Income Statement.
2025
£m Restated ((1))
2024
£m
Income tax expense before adjusting items 222 237
Profit before tax and adjusting items 923 966
Effective tax rate before adjusting items 24.1% 24.5%
Income Tax Expense Before Adjusting Items
Income tax expense before the impact of adjusting items as shown in the
Consolidated Income Statement and used in the Adjusted Effective Rate of
Taxation measure shown above.
2025
£m Restated ((1))
2024
£m
Income tax expense 175 206
Effect of adjusting items on income tax 47 31
Income tax expense before adjusting items 222 237
(1) See Note 3 for further details of the restatement.
Like-For-Like Sales Growth
The definition of Like-For-Like ("LFL") sales growth is outlined in the
Organic Sales Growth definition below.
Operating Cashflow Net of Lease Repayments
Operating cashflow net of lease repayments is the movement in cash and cash
equivalents period on period excluding the impact of working capital, capital
expenditure, income taxes, acquisition of subsidiaries or non-controlling
interests, cash proceeds from disposals, purchase of equity investments,
dividends paid to equity shareholders and non-controlling interests.
Net Cashflow Before Dividends, Acquisitions, Financing and Disposals
Net cashflow before dividends, acquisitions, financing and disposals is the
movement in cash and cash equivalents period on period excluding the impact
of acquisition of subsidiaries or non-controlling interests, cash proceeds
from disposals, purchase of equity investments, dividends paid to equity
shareholders and non-controlling interests.
This performance measure gives insight into the cash generated from the annual
operations of the business including capital expenditure reinvested in the
business, and excludes cashflows related to dividends, debt financing and
acquisitions and disposals as these decisions are outside the normal course of
business operations.
£m 52 weeks to 1 February 2025 53 weeks to 3 February
£m 2024
£m
Profit before tax 715 811
Add back impairments of tangible, intangible assets and investments 125 39
Add back other non-cash adjusting items 109 69
Less profit on disposal of associates (75) -
Depreciation and amortisation of non-current assets 786 664
Repayment of lease liabilities (420) (400)
Other 5 (22)
Operating cashflow net of lease repayments 1,245 1,161
Change in working capital (137) (197)
Capital expenditure (515) (530)
Income taxes paid (243) (208)
Other (11) (10)
Net cashflow before dividends, financing, acquisitions and disposals 339 216
Repayment of interest-bearing loans and borrowings (501) -
Draw down of interest-bearing loans and borrowings 865 -
Acquisition of subsidiaries and NCI (1,157) (611)
Cash consideration of disposals 95 -
Equity dividends paid (48) (50)
Dividends paid to NCI in subsidiaries net of dividend received - (2)
Change in cash and cash equivalents(1) (407) (447)
Cash and cash equivalents at the start of the period(1) 1,102 1,549
Cash and cash equivalents at the end of the period(1) 695 1,102
(1) Cash and cash equivalents equates to the cash and cash equivalents
presented in the Consolidated Statement of Cash Flows, as reconciled in Note
11.
Net Cash Before Lease Liabilities
Net cash before lease liabilities consists of cash and cash equivalents
together with other borrowings from bank loans and overdrafts but before lease
liabilities.
Net cash before lease liabilities is a measure of the Group's net indebtedness
that provides an indicator of the overall strength of the Consolidated
Statement of Financial Position. It is also a single measure that can be used
to assess the combined effect of the Group's cash position and its
indebtedness. Net cash before lease liabilities is considered to be an
alternative performance measure as it is not defined in IFRS. The most
directly comparable IFRS measure is the aggregate of borrowings and lease
liabilities (current and non-current) and cash and cash equivalents.
A reconciliation of these measures with net cash can be found in Note 10 to
the consolidated financial statements.
2025 2024
£m £m
Net debt (Note 10) (3,007) (1,452)
Lease liabilities 3,059 2,484
Net cash before lease liabilities 52 1,032
Net Finance Expense Before Adjusting Items
Net finance expense before adjusting items consists of the net of finance
income and finance expense before adjusting items included within finance
income and expense.
Net finance expenses is a measure of the Group's net finance expense before
the impact of any movement in valuation of put and call options, and
impairment loss on financial assets.
2025
£m 2024 53rd week 2024
£m £m £m
Net finance expenses (188) (115) (1) (116)
Adjusting items (in finance expenses) 62 (6) - (6)
Adjusting items (impairment loss on financial assets) - 59 - 59
Net finance expense before adjusting items (126) (62) (1) (63)
The table below shows a reconciliation of statutory operating profit for the
52 week period ended 1 February 2025 to the alternative performance measure,
operating profit before adjusting items after lease interest for the same 52
week period ended 1 February 2025.
Operating profit before adjusting items after lease interest IFRS 16 lease interest Adjusting items Operating Profit for the period
52 weeks 52 weeks 52 weeks 52 weeks
2025
2025
2025
2025
£m £m £m £m
JD Group Total
JD
JD UK Total 291 19 (12) 298
JD & Finish Line NAM 232 24 (7) 249
JD Asia Pacific 62 8 - 70
JD Europe 80 30 (29) 81
JD Total 665 81 (48) 698
Complementary Concepts
Community 186 15 (65) 136
Complementary 7 4 (22) (11)
Complementary Concepts Total 193 19 (87) 125
Sporting Goods & Outdoor
Outdoor 6 3 (3) 6
Sporting Goods 73 9 (8) 74
Sporting Goods & Outdoor Total 79 12 (11) 80
TOTAL GROUP 937 112 (146) 903
The table below shows a reconciliation of statutory operating profit for the
53 week period ended 3 February 2024 to the alternative performance measure,
operating profit before adjusting items after lease interest for 52 week
period ended 27 January 2024.
Operating profit before adjusting items after interest on lease liabilities IFRS 16 lease interest Adjusting items Operating Profit for the period Operating profit Operating profit for the period
52 weeks 2024 52 weeks 2024 52 weeks 2024 52 weeks 2024 53rd week 53 weeks 2024
£m £m £m £m £m £m
JD Group Total
JD
JD UK 393 19 (68) 344 2 346
JD & Finish Line NAM 196 17 6 219 2 221
JD Asia Pacific 63 7 2 72 1 73
JD Europe 76 18 (1) 93 - 93
JD Total 728 61 (61) 728 5 733
Complementary Concepts
Community 157 10 (26) 141 1 142
Complementary 2 2 (19) (15) - (15)
Complementary Concepts Total 159 12 (45) 126 1 127
Sporting Goods & Outdoor
Outdoor (5) 3 (9) (11) - (11)
Sporting Goods 54 7 30 91 - 91
Sporting Goods & Outdoor Total 49 10 21 80 - 80
Other 4 - (17) (13) - (13)
TOTAL GROUP 940 83 (102) 921 6 927
The table below shows a reconciliation of organic Sales Growth for each
operating segment and sub-segment for the unaudited 52 week period ended 27
January 2024 and reconciled to the 52 week period ended 1 February 2025. The
analysis is split over two tables.
Revenue Impact of Impact of 2024 FY24 Calendar alignment Revenue Acquisitions Organic sales Revenue 2025
2024(52 weeks) retranslating at M&A activity rebased 2025 growth
2025 rates 2024 2025
£m £m £m £m £m £m £m £m
JD UK 2,765 - (88) (3) 2,674 2 (14) 2,662
JD Europe 1,952 (52) - 2 1,902 - 297 2,199
JD North America 2,290 (52) - 5 2,244 - 192 2,436
JD Asia Pacific 483 (14) (14) 2 457 - 44 501
Total JD 7,490 (118) (102) 6 7,277 2 519 7,798
Community 1,062 (23) - 2 1,040 713 53 1,806
Complementary 260 - - (1) 260 139 (40) 359
Complementary Concepts 1,322 (23) - 1 1,300 852 13 2,165
Sporting Goods 993 (27) (77) - 889 - 63 952
Outdoor 553 - - - 552 - (9) 543
Sporting Goods & Outdoor 1,546 (27) (77) - 1,441 - 54 1,495
Other 39 - (39) - - - - -
TOTAL GROUP 10,397 (168) (218) 7 10,018 854 586 11,458
Continued 2025 LFL Non LFL LFL Non-LFL Organic sales
2025 2025 growth
£m £m £m % % %
JD UK 2,662 (71) 57 -2.6% 2.1% -0.5%
JD Europe 2,199 27 270 1.4% 14.2% 15.6%
JD North America 2,436 12 180 0.5% 8.0% 8.6%
JD Asia Pacific 501 - 44 -0.1% 9.6% 9.5%
Total JD 7,798 (32) 551 -0.4% 7.6% 7.1%
Community 1,806 14 39 1.3% 3.8% 5.1%
Complementary 359 (12) (28) -4.6% -10.8% -15.4%
Complementary Concepts 2,165 2 11 0.2% 0.9% 1.0%
Sporting Goods 952 67 (4) 7.6% -0.4% 7.1%
Outdoor 543 (10) 1 -2.0% 0.2% -1.7%
Sporting Goods & Outdoor 1,495 57 (3) 4.0% -0.2% 3.7%
TOTAL GROUP 11,458 27 559 0.3% 5.5% 5.8%
Sales Growth From Net New Space
The definition of sales growth from net new space is outlined in the Organic
Sales Growth definition above.
Sales Growth
One of the key measures of performance is the growth in sales between
reporting periods excluding the impact of currency.
The figures below are extracted from the Organic Sales Growth table.
Sales Growth
£m
Revenue 52 weeks 2024 10,397
Impact of retranslating at 2025 currency rate (168)
10,229
Revenue 52 weeks 2025 11,458
Sales Growth 12.0%
Summary Consolidated Income Statement On A 52 Week Basis
In order to provide comparability with the prior period results for the 53
weeks ended 3 February 2024, the tables below present a summary of the
Group's Consolidated Income Statement for the 52 week period to 1 February
2025, compared against an unaudited adjusted 52 weeks period to 27 January
2024. In determining the week 53 adjustment, revenue and gross profit
represents the actual trading performance in that week, with operating costs
and net finance expenses allocated on a reasonable basis to reflect an
estimate of costs for that week, unless a split was not deemed to sufficiently
represent the actual costs incurred during week 53.
52 weeks Restated((1)) Exclude 53rd week 2024 Restated((1)) Reporting Currency Change (52 weeks vs 52 weeks) Constant Currency Change (52 weeks vs 52 weeks)
2025 53 weeks 52 weeks
2024 2024
£m £m £m £m % %
Revenue 11,458 10,542 (145) 10,397 10.2% 12.0%
Gross profit before adjusting items 5,472 5,048 (62) 4,986 9.7% 11.5%
Gross margin before adjusting items 47.8% 47.9% 48.0% (20)bps (20)bps
Gross margin impact of acquisitions 0.2% -% -% 20bps 20bps
Gross margin before adjusting items excluding acquisitions 48.0% 48.0% -bps -bps
47.9%
Operating costs before adjusting items (4,423) (4,019) (3,963) 11.6% 13.5%
56
Interest on lease liabilities (112) (84) 1 (83) 34.9% 37.2%
Operating profit before adjusting items after interest on lease liabilities 937 945 940 (0.3%) 0.8%
(5)
Operating margin before adjusting items after interest on lease liabilities 8.2% 9.0% 9.0% (80)bps (90)bps
Net finance (expense)/income excluding interest on lease liabilities (14) 21 - 21
Profit before tax and adjusting items 923 966 (5) 961 (4.0%) (2.9%)
Adjusting items (208) (155) - (155)
Profit before tax 715 811 (5) 806 (11.3%)
(1) See Note 3 for further details of the restatement.
The table below shows the reconciliation between cost of sales before
adjusting items, and cost of sales.
52 weeks 53 weeks Exclude 53rd 52 weeks
2025 2024 week 2024
2024
£m £m £m £m
Cost of sales before adjusting items (5,986) (5,494) 83 (5,411)
Adjusting items within Cost of sales (9) - - -
Cost of sales (5,995) (5,494) 83 (5,411)
The table below shows the reconciliation between operating costs before
adjusting items and operating costs.
52 weeks 53 weeks Exclude 53rd 52 weeks
2025 2024 week 2024
2024
£m £m £m £m
Selling and distribution expenses (3,933) (3,623) 50 (3,573)
Administrative expenses before adjusting items (520) (435) 7 (428)
Share of equity accounted investees 5 8 - 8
Other operating income 25 31 (1) 30
Operating costs before adjusting items (4,423) (4,019) 56 (3,963)
Adjusting items within administrative expenses (137) (102) - (102)
Operating costs (4,560) (4,121) 56 (4,065)
Gross Margin Excluding the Impact of Acquisitions
Gross margin excluding the impact of acquisitions is an alternative
performance measure used by management to assess the underlying profitability
of the Group's operations by removing the effect of acquisitions completed
during the reporting period. This measure facilitates comparison with prior
periods and better reflects organic performance.
Operating Margin Before Adjusting Items after interest on lease liabilities
In FY25 we have updated our APM metric on operating profit to now include
interest on lease liabilities so that both the depreciation and interest costs
of our leases under IFRS 16 are included in this APM. This gives a more
accurate view of our operating performance (in line with how operating profit
would have traditionally been reported and understood with the full cost of
servicing a property portfolio included in operating performance).
A reconciliation between operating margin before adjusting items after
interest on lease liabilities can be found in the Summary Consolidated Income
Statement on a 52 Week Basis above.
Operating Profit Before Adjusting Items after interest on lease liabilities
A reconciliation is presented in Note 2 between operating profit and operating
profit before adjusting items after interest on lease liabilities by segment
and sub‑segment.
Organic Sales Growth
One of the key measures of performance is the growth in sales between
reporting periods excluding the impact of currency, acquisitions and
disposals. This is called 'Organic Sales Growth'.
It is calculated at constant currency using the average exchange rate of the
current period applied to sales from the current and prior periods. Organic
Sales Growth is calculated by removing the impact of all sales in the prior
period from disposals made in the prior period, current period and assets held
for sale at the end of the current period. This gives a new prior period base
to calculate Organic Sales Growth rates from.
Organic Sales Growth % in the current year then excludes any sales from
acquisitions in the 12 months since acquisition, and any sales from businesses
disposed of in the current period or held for sale at the end of the current
period. This isolates Organic Sales Growth to the percentage change in the
year-on-year sales growth from existing stores. Organic Sales Growth is split
into Like-For-Like ("LFL") sales from existing stores or sales from net new
space and store conversions which are not LFL period on period (non LFL).
Additionally, Organic Sales Growth is calculated compared to the unaudited 52
week prior period ended 3 February 2024 to aid comparability with the 52 weeks
ended 1 February 2025. The impact of this calendar change on FY24 has been
analysed in the column called FY24 calendar alignment in the table above.
These metrics of Organic Sales Growth and its two component parts, LFL and
non-LFL, enables the performance of the retail stores to be measured on a
consistent year-on-year basis and is a common term used in the industry.
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