Share Prices & Company Research


07 July 2020

Record Year for JD Sports

James Rowbury, Investment Research Coordinator

Continuing its lengthy record of strong growth, JD Sports reported a 30% jump in revenue to £6.1 bn for the year to 1st February. Despite these impressive results, investors should bear in mind that given the lockdown measures implemented on 23rd March, future results are likely to paint a different picture.

The firm’s impressive retail strategy, which has bucked the trend amidst a structural decline in the high street. During the year, the company was able to increase its retail footprint by 52 stores in mainland Europe, 18 in Asia and 11 in the US. However, the COVID-19 pandemic has slowed its expansion, with 98% of the firm’s stores closing due to lockdown measures. 

This is likely to affect the firm’s growth into 2021 and beyond, as the firm’s retail arm grapples with increased costs from the purchase of PPE for its staff and potentially lower sales as consumers return to the high street tentatively. The company’s online offering, a favourite among young people and sports enthusiasts, is likely to offset some of the decline that its retail stores are experiencing. 

With most of its stores now reopen, one would expect to see muted but steadily rising footfall in JD Sports stores as shoppers begin to acclimatise themselves to the high street re-opening. Given the firm’s brand power amongst millennials and distinctive store experience, which includes live music, JD Sports could make a faster recovery than many of its high street rivals.

Please note that investments and income arising from them can fall as well as rise in value and you may lose some or all the amount you have invested. Past performance and forecasts are not reliable indicators of future results or performance. Please note that this communication is for information only and does not constitute a recommendation to buy or sell the shares of the companies mentioned. 
Record Year for JD Sports
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