By Sabela Ojea
JD Sports Fashion PLC on Thursday reported a drop in pre-tax profit for the first half after booking higher costs, although it said sales rose due to high levels of demand for its sports products.
The fashion retailer posted a pre-tax profit for the six months ended July 30 of 298.3 million pounds ($336.2 million), compared with 364.6 million GBP a year earlier.
Revenue rose to 4.42 billion GBP from 3.89 billion GBP, the company said, adding that organic sales were 5% up on the previous year.
The board has declared an interim dividend of 0.13 pence. The company did not declare a payment to shareholders a year ago.
JD Sports said the first-half results came in above the board’s expectations, noting that the company has opened new stores around the world.
For fiscal 2023, the company said the board continues to expect adjusted pre-tax profit in line with fiscal 2022, and that sales for the second half to date are 8% above last year.
“Given the widespread macroeconomic uncertainty, inflationary pressures and the potential for further supply chain disruption with industrial action a persistent risk in many markets, it is inevitable that we remain cautious about trading over the remainder of second half,” said non-executive chairman Andrew. Higginson said.
Write Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix is not following anyone. Autodesk_new
