JD Sports scraps dividend as profits go down
in first half!
JD Sports, the British sports-fashion retailer, announced
earlier today (8 September) that it intends to scrap its
interim divided following a sharp fall in profit.
The retailer also warned of uncertainty in the coming days
owing to continuing lower footfall.
The first half of the year, ended 1 August, saw the retailer
record revenue of £2.5 billion, which is a fall of 6.5 per
cent from what it was during the same period last year.
Pre-tax profits dropped by £96.7 million to £61.9 million
during the period.
Notably, the net cash at the end of first half was £764.9
million, which is a jump of £118.1 million from the previous
JD Sports said that despite turbulent trading, store
closures and extended lockdowns during the period, it
retained over 90 per cent of total revenue – all thanks to
the strength of the brand and that lot of customers switched
However, it quickly added that increasing expenditure on
health and safety measures had severely hit the profit of
As it has happened with many fashion retailers, JD Sports
too saw its e-commerce business doing very well and stressed
on more investment to boost online sales.
Though the reopened stores have done well, JD Sports
believes it is majorly due to pent-up demand and warned the
trend to be short-lived.
The retailer said COVID-19 will continue to remain a
challenge for some time now, but it was optimistic that its
strengths in customer engagement and key brand relationships
would help it grow in the days to come.
The retailer, which has its presence in Europe, Asia and
Australia too, generated revenue of £4.717.8 million.