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 year.

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 to online.

However, it quickly added that increasing expenditure on health and safety measures had severely hit the profit of the retailer.

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.





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