Tiso owner JD Sports hailed as retail sector 'star performer' as Gen Z digs deep
The sports clothing and trainers giant, which also has a controlling stake in Scottish outdoor retailer Tiso, reported a 12 per cent rise in underlying sales over its first half to July 29, with July trading boosted by strong back-to-school demand in North America. Underlying pre-tax profits dipped 2.6 per cent to £373.5 million.
The firm said it was “acutely aware of how tough the macroeconomic environment is for consumers across the world”, but said its shoppers - in the main trendy young adults - “remain resilient”. It also stood by expectations for full-year underlying profits to reach £1.04 billion for the year to February 3, with underlying sales lifting 10 per cent in the first seven weeks of the second half. Around 65 per cent of its annual profit is expected to be made in the second half. On a reported basis, half-year pre-tax profits rose 25.8 per cent to £375.2m.
The group expects to open more than 200 stores worldwide by January next year. It has been growing rapidly in the US, including adding a flagship store in Chicago earlier this year, and in May it shared ambitious growth plans to open up to 350 shops globally each year, focused in North America and continental Europe.
Mark Crouch, an analyst at trading and investment platform eToro, said: “JD Sports remains a star performer in a retail sector that has had to fight hard for people’s money over the past 12 months. The strong growth in both revenues and profits shows that JD has a product that people want and are still willing to spend money on even when there isn’t much of it going around.”
Julie Palmer, a partner at Begbies Traynor, added: “The company has built a brand with impressive pull among its key Gen Z and millennial audiences, which should support its expansion plans for over 200 new stores by January 2024.”
JD recently agreed to buy France’s sportswear and trainer retailer Courir, for nearly £450m.