JD Sports revealed its pre-tax profits have tumbled by more than £50 million as bosses of the sportswear giant cautioned over inflation and supply chain disruption affecting trading over the rest of the year. The retailer posted pre-tax profits of £383.5 million for the first half of the year, a drop from £439.5 million a year ago.
JD said the results are at the top end of its expectations, with the reduction on last year’s profits partially driven by supply chain disruption affecting international brands and dragging down stock of its key footwear styles.
Bosses warned that widespread economic uncertainty, inflationary pressures and industrial action leading to further challenges in supply chains could affect its trading in the second half of the year, although the group has not altered its full-year profit outlook.
JD’s non-executive chair Andrew Higginson pointed out that although there has been a “period of transition” for the board, it has not impacted the group’s financial performance.
JD’s former boss Peter Cowgill resigned in May after the retailer was fined £4.3 million by the UK’s competition watchdog for sharing commercially-sensitive information with Footasylum, the rival it was seeking to buy. Mr Higginson has since stepped in as non-executive chair and JD appointed its new chief executive, Regis Schultz, in August.
Mr Higginson said: “Regis has now commenced in the role with his induction into the group, including introductions with key business leads and international brand partners, at an advanced stage. We firmly believe that Regis has the right characteristics and experience to lead the group on the next phase of its journey.”
