Bury-based JD Sports announces pre-tax profits slump as inflation hits

Sportswear giant JD Sports has announced a slump in its pre-tax profits by more than £50m as bosses cautioned over inflation and supply chain disruption affecting trading over the rest of the year. Its comes days after the Bury-headquartered group handed a former executive chairman Peter Cowgill a £5.5m exit deal after he resigned in May.

The retailer posted pre-tax profits of £383.5m for the first half of the year, a drop from £439.5m a year ago. JD Sport 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.

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Despite worsening economic conditions, consumers are “reluctant to give up the things most important to them”, the company said, adding that demand remains resilient. This is reflected in the company’s revenue which grew to £4.4bn in the first half of the year, up from £3.9bn a year ago. Sales were particularly strong in the summer as a result of more people going on international holidays, although trade slowed in August and early September as shoppers held back on buying clothes for the autumn season while the weather stayed warm, JD said.

JD Sports non-executive chair Andrew Higginson said: “Whilst the overall performance continues to be encouraging and the result for the half year