JD Sports Fashion Plc
Annul Report & Accounts 2025
STRONG
AND
AGILE
JD Sports Fashion Plc Annul Report & Accounts 2025
JD is a leading global
sportsfashion powerhouse
that seeks to inspire the
emerging generation of
globally-minded consumers
through aconnection to
theuniversal cultures of
sport, music andfashion.
WHO WE ARE
The JD Group is a leading global omnichannel
retailer of sports fashion brands, providing
customers with the products they most want
across footwear and apparel from established
and new premium brands.
Founded in 1981 with a single store in Bury,
Greater Manchester, England by John Wardle
andDavid Makin, we have grown to 4,850
stores worldwide. Our strategy is focused on
fourstrategic pillars: JD Brand First to be the
firstchoice for consumers globally; leveraging
Complementary Concepts such as our US
community brands; moving Beyond Physical
Retail by creating a lifestyle ecosystem of
relevant products and services; and doing our
best for our People, Partners and Communities.
OUR VISION
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CONNECT GLOBALLY
INSPIRE LOCALLY
EMPOWER INDIVIDUALLY
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CONTENTS
Strtegic Report
Overview
Who We Are XX
Performnce Summry XX
Strtegic Highlights XX
At  Glnce XX
Culture nd Vlues XX
Investment Cse XX
Business Review
Chir’s Sttement XX
Chief Executive Officer’s Review XX
Mrket Review XX
Our Business Model XX
Our Strtegy XX
Strtegy in Action XX
Key Performnce Indictors XX
Chief Finncil Officer’s Sttement XX
Principl Risks XX
ESG XX
Stkeholder Enggement XX
Non-Finncil nd Sustinbility XX
Informtion Sttement XX
Governnce Report
Governnce t  Glnce XX
Chir’s Introduction to Governnce XX
Bord of Directors XX
Senior Ledership Tem XX
Directors’ Report XX
Corporte Governnce Report XX
Nomintions Committee Report XX
Audit & Risk Committee Report XX
ESG Committee Report XX
Directors’ Remunertion Report XX
Sttement of Directors’ Responsibilities XX
Independent Auditor’s Report XX
Finncil Sttements
Consolidted Income Sttement XX
Consolidted Sttement of
Comprehensive Income XX
Consolidted Sttement of
Finncil Position XX
Consolidted Sttement of
Chnges in Equity XX
Consolidted Sttement of Csh Flows XX
Notes to the Consolidted Finncil
Sttements XX
Compny Blnce Sheet XX
Compny Sttement of Chnges in Equity XX
Notes to the Compny XX
Finncil Sttements XX
Group Informtion
Alterntive Performnce Mesures XX
Finncil Clendr XX
Shreholder Informtion XX
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JD Sports Fashion Plc
Annual Report & Accounts 2025
1
CONTENTS
Strategic Report
Overview
Performance Summary 2
Strategic Highlights
3
At a Glance 4
Our Culture 6
Investment Case 8
Business Review
Chair’s Statement 10
Chief Executive Officer’s Review 12
Market Review
18
Our Business Model 20
Our Strategy 22
Strategy in Action 24
Key Performance Indicators 32
Chief Financial Officer’s Statement 34
Principal Risks 44
ESG 54
Stakeholder Engagement
82
Non-Financial and Sustainability
Information Statement
87
Governance Report
Governance at a Glance 88
Chair’s Introduction to Governance 89
Board of Directors
90
Senior Leadership Team
92
Directors’ Report 94
Corporate Governance Report 98
Nominations Committee Report 104
Audit & Risk Committee Report 106
ESG Committee Report 112
Directors’ Remuneration Report 114
Statement of Directors’
Responsibilities
140
Independent Auditor’s Report
141
Financial Statements
Consolidated Income Statement 154
Consolidated Statement
ofComprehensiveIncome
154
Consolidated Statement
ofFinancialPosition
155
Consolidated Statement
ofChangesinEquity
156
Consolidated Statement of Cash Flows 157
Notes to the Consolidated
FinancialStatements
158
Company Balance Sheet 229
Company Statement of Changes
inEquity
230
Notes to the Company
FinancialStatements
231
Group Information
Alternative Performance Measures 246
Financial Calendar 253
Shareholder Information 253
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Performance Summary
Revenue
1
£11,458m
+10.2%
£11,458m
£10,397m
£10,125m
2025
2024
2023
Profit before tax and adjusting items
1,2,*
£923m
(4.0)%
£923m
£961m
£1,043m
2025
2024
2023
Operating margin before adjusting items
after interest on lease liabilities
1,2,*
8.2%
(80)bps
8.2%
9.0%
10.3%
2025
2024
2023
Operating profit
1
£903m
(2.0)%
£903m
£921m
£806m
2025
2024
2023
Profit before tax
1
£715m
(11.3)%
£715m
£806m
£487m
2025
2024
2023
Basic earnings per share
9.50p
(9.1)%
9.50p
10.45p
3.65p
2025
2024
2023
1 2025 is a 52-week year to 1February 2025. To aid comparability, 2024 results and associated percentage changes are presented on an unaudited 52-week basis. Further
information including a reconciliation to statutory measures is included in the Alternative Performance Measures section on pages 246 to 252.
2 For the financial period ended 1February 2025, the Group has updated the adjusting items policy to include the amortisation of acquired intangible assets. 2023 and 2024
comparatives have been restated for comparability. Please refer to Note 4 of the consolidated financial statements for further details of the restatement.
* Throughout the Annual Report ‘*’ indicates an instance of a term defined and explained in the Alternative Performance Measures section on page 246 along with a
reconciliation to statutory measures. Further detail setting out the background to the Alternative Performance Measures is given in Note 1 to the financial statements.
Thedefinition of adjusting items is included in Note 4 of the Consolidated Financial Statements on page 168.
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2
Performance Summary
Revenue
1
£11,458m
+10.2%
£11,458m
£10,397m
£10,125m
2025
2024
2023
Profit before tax and adjusting items
1,2,*
£923m
(4.0)%
£923m
£961m
£1,043m
2025
2024
2023
Operating margin before adjusting items
after interest on lease liabilities
1,2,*
8.2%
(80)bps
8.2%
9.0%
10.3%
2025
2024
2023
Operating profit
1
£903m
(2.0)%
£903m
£921m
£806m
2025
2024
2023
Profit before tax
1
£715m
(11.3)%
£715m
£806m
£487m
2025
2024
2023
Basic earnings per share
9.50p
(9.1)%
9.50p
10.45p
3.65p
2025
2024
2023
1 2025 is a 52-week year to 1February 2025. To aid comparability, 2024 results and associated percentage changes are presented on an unaudited 52-week basis. Further
information including a reconciliation to statutory measures is included in the Alternative Performance Measures section on pages 246 to 252.
2 For the financial period ended 1February 2025, the Group has updated the adjusting items policy to include the amortisation of acquired intangible assets. 2023 and 2024
comparatives have been restated for comparability. Please refer to Note 4 of the consolidated financial statements for further details of the restatement.
* Throughout the Annual Report ‘*’ indicates an instance of a term defined and explained in the Alternative Performance Measures section on page 246 along with a
reconciliation to statutory measures. Further detail setting out the background to the Alternative Performance Measures is given in Note 1 to the financial statements.
Thedefinition of adjusting items is included in Note 4 of the Consolidated Financial Statements on page 168.
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Strategic Highlights
JD
BRAND FIRST
Net no. of JD fascia stores opened
1
226
COMPLEMENTARY
CONCEPTS
Stores acquired through Hibbett
andCouriracquisitions
1,485
BEYOND
PHYSICAL RETAIL
JD STATUS active accounts globally
8m+
PEOPLE, PARTNERS
AND COMMUNITIES
Employees aged under 30 years
75%
1 Includes stores converted from other fascias.
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TOTAL NUMBER OF STORES
4,850
A leading global sports fashion retailer
COMPLEMENTARY
CONCEPTS STORES
2,221
NORTH AMERICA
1,652
EUROPE
638
NORTH AMERICA*
852
UK
434
ASIA
PACIFIC
102
OUTDOOR
231
SPORTING
GOODS
372
*including Finish Line and
Finish Line at Macy’s
EUROPE
569
JD STORES
2,026
SPORTING GOODS
& OUTDOORS
603
92
with a growing number of JD gyms
*
*excluding gyms
AT A GLANCE
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TOTAL NUMBER OF STORES
4,850
A leading global sports fashion retailer
COMPLEMENTARY
CONCEPTS STORES
2,221
NORTH AMERICA
1,652
EUROPE
638
NORTH AMERICA*
852
UK
434
ASIA
PACIFIC
102
OUTDOOR
231
SPORTING
GOODS
372
*including Finish Line and
Finish Line at Macy’s
EUROPE
569
JD STORES
2,026
SPORTING GOODS
& OUTDOORS
603
92
with a growing number of JD gyms
*
*excluding gyms
UK
Country Stores
UK 665
Total 665
NORTH AMERICA
Country Stores
US 2,470
Canada 34
Total 2,504
EUROPE
Country Stores Country Stores
France 387 Czech Republic 10
Spain 357 Hungary 10
Poland 215 Croatia 6
Portugal 113 Denmark 6
Germany 92 Austria 5
Greece 84 Bulgaria 5
Italy 82 Finland 5
Netherlands 42 Latvia 5
Romania 42 Sweden 3
Belgium 39 Luxembourg 3
Ireland 27 Bosnia 1
Slovakia 14 Serbia 1
Lithuania 12
Slovenia 1
Cyprus 11 Andorra 1
Total 1,579
We also operate JD stores inIndonesia, Saudi Arabia, Qatar, Bahrain, Egypt, UAE,
South Africa and Israel, via franchise and joint venture agreements. In addition, Courir
has franchises operating in Azerbaijan, UAE, Kuwait, Qatar, Cote d’Ivoire, Senegal,
Morocco, Tunisia, Israel, and departments of France (Guiana and Réunion).
ASIA PACIFIC
Country Stores
Australia 61
Malaysia 20
Thailand 10
Singapore 6
New Zealand 5
Total 102
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TOTAL COUNTRIES
49
including franchises and
joint ventures
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CONNECT GLOBALLY
INSPIRE LOCALLY
EMPOWER
INDIVIDUALLY
JD BRAND
FIRST
BEYOND
PHYSICAL
RETAIL
COMPLEMENTARY
CONCEPTS
PEOPLE, PARTNERS
AND COMMUNITIES
CONNECT
GLOBALLY
INSPIRE
LOCALLY
EMPOWER
INDIVIDUALLY
Our Culture
The JD Group fosters a dynamic and innovation-
driven culture, emphasising brand identity
andengagement. Through active participation
andfeedback from colleagues, the Group has
cultivatedan environment where individuals
acrossall territories and fascia feel integrated
intothe JD Family's DNA. Globally, colleagues can
express and bring their whole selves to their roles,
which is reflected in the Group’s latest engagement
score with86% of colleagues agreeing with the
statement, “I can be myself at work.”
By nurturing a culture of respect, collaboration
andbelonging, colleagues within the Group
feelvalued, supported and inspired to reach
theirfull potential. This culture is embedded
intheGroup’s mission to:
ENGAGEMENT SCORE
86%
Agree “I can be myself at work.”
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Q&A
Our Culture
The JD Group fosters a dynamic and innovation-
driven culture, emphasising brand identity
andengagement. Through active participation
andfeedback from colleagues, the Group has
cultivatedan environment where individuals
acrossall territories and fascia feel integrated
intothe JD Family's DNA. Globally, colleagues can
express and bring their whole selves to their roles,
which is reflected in the Group’s latest engagement
score with86% of colleagues agreeing with the
statement, “I can be myself at work.”
By nurturing a culture of respect, collaboration
andbelonging, colleagues within the Group
feelvalued, supported and inspired to reach
theirfull potential. This culture is embedded
intheGroup’s mission to:
ENGAGEMENT SCORE
86%
Agree “I can be myself at work.”
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Employee Resource Groups (‘ERGs’):
Our ERGs, each supported by executive
sponsors, meet quarterly with leads of our
diversity community networks to discuss key
takeaways from monthly meetings. These
discussions inform decision making and
foster a culture of belonging, enabling
diverse groups to thrive.
Culture Calendar Initiatives:
Managed by our People Experience team,
the culture calendar celebrates and
acknowledges important events throughout
the year. ERGs play a crucial role in ensuring
these initiatives are authentic, backed by
senior leaders.
Engagement Survey:
Our Global Engagement Survey provides
colleagues with the opportunity to
confidentially share their experiences
ofworking with JDGroup. The data is
reviewed by leadership teams to identify
common themes and create action plans
fornecessarychanges. In the latest survey,
weachieved a response rate of 88%, withan
engagement score of 70% (anincrease of 1%
compared to 2023), anenablement score of
79% (an increase of5% compared to 2023),
and an empowerment score of 80%
(anincrease of 3% compared to 2023).
Thesurvey has been instrumental in helping
us focus our attention on the things that
areimportant to our teams. For example,
theintroduction of ourERGs wasa direct
result of feedback from the 2023
engagement survey. Wecontinue to use
thesurvey data to inform our strategy and
make necessary changes to enhance the
overall employeeexperience.
Town Hall Meetings:
Hosted by our CEO and CFO, these
meetings reinforce our shared purpose
andkeep colleagues informed of key
decisions. Live Q&A sessions address
concerns in real time, reducing
uncertaintyand providing clarity.
Demographic Data:
By analysing demographic data, we
understand how different groups experience
life at JD. This helps us take targeted actions
to enhance inclusivity, connecting with
colleagues, customers and communities,
andattracting and retaining top talent.
Executive Support:
Our Executive team regularly visits retail
stores to connect with colleagues providing
an opportunity for questions. This visibility
supports collaboration between retail, head
office anddistribution centres. In addition,
our Non Executive Director for Workforce
Engagement leads culture engagement
events, such as International Women’s Day.
Key
Initiatives
Nicola Kowalczuk
Chief People Officer
feedback,and holding ourselves accountable for our actions.
Thisapproach ensures that we are constantly evolving and improving
asanorganisation.
Open Communication
Effective communication is essential for embedding a positive culture.
We maintain open communication channels through regular town halls,
engagement surveys with actionable outcomes and in the year 2025,
we will launch our communication app, "JD Now." This app will link all
colleagues globally, ensuring seamless and effective communication
across our diverse workforce.
– By integrating these multifaceted approaches, we believe we can
create a work environment where every colleague feels valued,
empowered and motivated to contribute to the success of our group.
Together, we will continue to build and sustain a positive culture that
drives our mission forward
Q. What are the Future Priorities?
A. Our priorities for the next year include communication, engagement,
culture and growth. We will launch our colleague communication app to
connect globally, support uplifting activities and events and embed our
culture.
JD Group is committed to a dynamic, inclusive culture where colleagues
can be their authentic selves. We aim to create an environment where
everyone feels valued and supported. By leveraging demographic data,
we will enhance inclusivity and attract top talent. Together, we can
ensure a future where everyone thrives and makes a difference.
Q. How do you embed a Positive Culture across the Group?
A. At the heart of our strategy for embedding a positive culture
liesourcommitment to integrating the mission of our group into our
everyday operations. This supports several critical steps designed
tofoster a thriving work environment and is achieved through
amultifaceted approach:
Empowering Colleagues
We prioritise the long-term investment in colleague development and
wellbeing. This empowerment is achieved through comprehensive
training programmes, wellness initiatives and career development
opportunities that ensure our colleagues can grow and succeed.
Inclusive Environment
Our commitment to inclusivity is unwavering. We strive to create an
environment where all colleagues feel empowered to contribute and
where diverse perspectives are not only welcomed but actively sought.
By valuing the unique insights that arise from our diverse workforce,
wecultivate innovation and collaboration.
Leadership and Accountability
Strong leadership and accountability are key in our culture-building
efforts. We foster a culture of transparency and to continuous
improvement by setting clear expectations, providing regular
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Investment Case
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01
02
Operating at scale in a
growing market
Optimally positioned to
gainshare in North America
and Europe
We operate in the Global Sports Fashion market which is
attractiveand growing, benefiting from the
ongoingcasualisation and active lifestyle trends.
After a period of rapid development, we currently expect the
sportswear market to grow at a slower rate over the medium
term, in line or slightly lower than the last two years at 2 to 3%
annual growth on average.
We are a global market leader in sports fashion, with strong
positions across all our regions. A key strength is our ability
tosee the world through the mindset of our customer.
In North America and Europe, we see headroom for further
growth as we continue to roll out our successful model,
leveraging our acquisitions and through selective physical
expansion across both our core JD proposition and
ourComplementary Concepts fascias.
2-3%
Forecast medium-term sportswear market
average growth per annum
2,504
Total stores
in North America
1,579
Total stores
in Europe
Source: JD Group
03
04
Strong and agile multibrand
business model
Customer focused
omnichannel model
Our strong and agile multibrand model enables visibility over
trends and a deep understanding of our customer. This gives
us the ability to grow ahead of the market. We have leading
store economics, strong brand relationships and a proven
ability to drive and respond to trends.
We are a key partner for both established global sportswear
brands and emerging fast-growing smaller brands.
Our strong brand relationships lead to optimum product
allocations including a high level of product exclusivity.
We have moved from a multichannel to an omnichannel
model. We are channel agnostic: our goal is to meet our
customer’s needs whether they want to buy in store or online,
and deliver in store or at home.
Our stores and fascias are designed to fit our communities,
while our digital footprint moves with the fast pace of the
modern consumer.
We continue to roll out the JD STATUS programme globally,
building on the success in the US and the UK.
150+
Number of brands available to our customers
with sales >£1m
>8m
Active JD STATUS members globally
Source: JD Group
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Investment Case
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01
02
Operating at scale in a
growing market
Optimally positioned to
gainshare in North America
and Europe
We operate in the Global Sports Fashion market which is
attractiveand growing, benefiting from the
ongoingcasualisation and active lifestyle trends.
After a period of rapid development, we currently expect the
sportswear market to grow at a slower rate over the medium
term, in line or slightly lower than the last two years at 2 to 3%
annual growth on average.
We are a global market leader in sports fashion, with strong
positions across all our regions. A key strength is our ability
tosee the world through the mindset of our customer.
In North America and Europe, we see headroom for further
growth as we continue to roll out our successful model,
leveraging our acquisitions and through selective physical
expansion across both our core JD proposition and
ourComplementary Concepts fascias.
2-3%
Forecast medium-term sportswear market
average growth per annum
2,504
Total stores
in North America
1,579
Total stores
in Europe
Source: JD Group
03
04
Strong and agile multibrand
business model
Customer focused
omnichannel model
Our strong and agile multibrand model enables visibility over
trends and a deep understanding of our customer. This gives
us the ability to grow ahead of the market. We have leading
store economics, strong brand relationships and a proven
ability to drive and respond to trends.
We are a key partner for both established global sportswear
brands and emerging fast-growing smaller brands.
Our strong brand relationships lead to optimum product
allocations including a high level of product exclusivity.
We have moved from a multichannel to an omnichannel
model. We are channel agnostic: our goal is to meet our
customer’s needs whether they want to buy in store or online,
and deliver in store or at home.
Our stores and fascias are designed to fit our communities,
while our digital footprint moves with the fast pace of the
modern consumer.
We continue to roll out the JD STATUS programme globally,
building on the success in the US and the UK.
150+
Number of brands available to our customers
with sales >£1m
>8m
Active JD STATUS members globally
Source: JD Group
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05
06
Operational excellence to
grow profit ahead of sales
Strong cash generation and
disciplined capital allocation
We have invested to ensure we have the right foundations
inplace to deliver profit growth ahead of sales over the
medium term.
We are highly disciplined, with a clear focus on our operating
efficiency and the cost base. We will deliver synergies from
our recent acquisitions and reduce double-running costs as
we begin to see the benefits of our infrastructure and supply
chain investments.
We are a highly cash generative business. This underpins
ourstrong balance sheet position and provides headroom
forinvestment and to meet our commitments.
We have a clear capital allocation framework and are
committed to delivering returns to shareholders.
8.2%
Operating profit margin before adjusting items after
interest on lease liabilities*
£1.2bn
Operating cash flow net of lease repayments*
This solid
foundation
provides an
earnings
growth
opportunity
with highcash
generation.
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Chair’s Statement
Reflecting the evolution of our
markets, we have refined our
strategy. I am confident that we
are well positioned to navigate
current market conditions and
deliver improving returns to our
shareholders.”
Andrew Higginson
Chair
Since we set out our strategic plan in February 2023, we’ve had
many successes including the JD store rollout programme,
completion of key acquisitions in the US and Europe, the clear
focus on core businesses and simplification of the group structure,
and the strengthening of governance and controls. Of course, we
have also addressed a number of challenges along the way,
including delayed progress with our European distribution centre
and the accuracy of our forecasting and subsequent guidance to
the markets.
When reflecting on the period, we have seen the benefits of our
strong and agile multibrand model and I am pleased to report that
we now have the strong foundations in place for the next phase of
our development. On the other hand, the broader market
conditions have evolved, resulting in slower market growth, and it
is fair to say the headwinds were more challenging and persistent
than we had anticipated.
As a result, we announced an updated medium-term strategic
plan in April 2025, after the period end. This set out a clear
framework for delivering profitable growth, improving operating
leverage, maintaining our focus on cash generation and delivering
returns for our shareholders. I will come back to these later.
While we again delivered more than £900m in Profit before tax
and adjusting items*, this felt an even greater achievement than
last year given how market conditions were more challenging this
year. We saw a similar trading pattern with excellent performance
across the key trading events such as back-to-school and the
holiday season, reflecting the strengths and skills of our
operational teams across buying and merchandising, marketing
and retail operations. We had the right products, in the right
places, at the right times, which were presented and sold well.
Outside of these key periods, the environment was highly
competitive throughout the year with sustained promotional
activity evident inour key markets. We chose not to participate in
much of this activity with our focus being on maintaining our
financial discipline in order to protect our margins. This approach
is in line with our strategy to be a full price, premium retailer. It's
worth reiterating that this proposition is recognised and valued by
our brand partners and, in return, we get great access to innovation
and new products.
We also saw an increasingly cautious consumer as the year
progressed, ending the year in a much more uncertain geo-
political and economic environment, and recent developments
around tariffs, for example, have only increased this uncertainty.
We saw lower footfall and conversion across most of our key
markets with the average selling price helping to bridge across to
flat like-for-like sales through the period.
Turning to the operational side, I shared previously our journey
regarding building the foundations of a more sustainable business
in terms of people, systems, processes and controls, in keeping
with our strategy. These elements are essential when building a
business that can continue to grow and provide attractive returns
for our shareholders. You will recall, I highlighted previously
anumber of areas of internal control weakness and addressing
these has obviously been a priority. I’m pleased to report that
weare developing a rigorous internal control environment
appropriate for a Group of our scale, including a strong focus
onimproving IT Controls. As you would expect, we will continue
to develop and enhance these controls as appropriate on an
ongoing basis.
Last year, we made a number of key changes to the composition
of the Board, which included bringing on a new Chief Financial
Officer and three new non-executive directors to ensure we had
the right balance of skills, experience and diverse perspectives to
support the Group’s strategic direction. We continued this process
into FY25 and made the appointment of our first US-based Board
director, reflecting that the US represents 40% of the business
following the acquisition of Hibbett, Inc. (‘Hibbett’), which I discuss
in more detail below. Following these developments, I am pleased
to report that the Board governance and oversight is strong and
we are operating effectively, fostering a culture of robust debate,
accountability and careful decision making as we navigate the
opportunities and challenges ahead.
* Throughout the Annual Report ‘*’ indicates an instance of a term defined and explained in the Alternative Performance Measures section on page 246 along with a
reconciliation to statutory measures. Further detail setting out the background to the Alternative Performance Measures is given in Note 1 to the financial statements.
Thedefinition of adjusting items is included in Note 4 of the Consolidated Financial Statements on page 168.
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Financial Summary
The financial year for the 52 weeks to 1 February 2025 was
another year of good revenue growth, driven by organic growth
of 5.8% and acquisitions that added 8.5%. This growth was
achieved despite not participating in much of the elevated
promotional activity in the year, in order to protect our full price
offer. Before the impact of acquisitions, our gross margin
remained flat period on period at 48.0%, a strong performance in
such a promotional market. Including our two new acquisitions,
gross margin was down 20bps. Operating profit again fell short of
our expectations, impacted by some of our long-term investments
taking longer to complete and at a higher cost than anticipated.
Overall in the period compared to the comparative 52-week
period, Revenue was £11.5bn, up 10% with Operating profit before
adjusting items and after interest on lease liabilities* down £3m
versus the previous period to £937m. Profit before tax and
adjusting items* was £923m, down 4% reflecting increased
interest costs to finance our acquisitions. Adjusted basic earnings
per share was 12.39p, down 3%, supported partly by a lower
adjusted effective tax rate.
Profit before tax was down 12% to £715m, as adjusting items
increased £53m to £208m.
Corporate Activity
In terms of corporate activity, after completing much of the
workto simplify the group structure last year, I would like to
focuson two transformational deals completed during FY25: the
acquisitions of Hibbett in the US and Groupe Courir S.A.S
("Courir") in France.
Firstly, I’d like to welcome all those working at Hibbett and Courir
to the JD Group and I look forward to working with them in the
years to come. Their expertise in operating fascias that are subtly
different from our existing fascias will add additional insights and
opportunity to the group.
The Hibbett acquisition enhances our presence within North
America and aligns with our objective of strengthening our
existing community businesses - Shoe Palace on the West Coast
and DTLR on the East Coast - with a highly complementary
footprint, giving the Group access to hundreds of underserved
communities across the US. In addition, Hibbett is the catalyst
tointegrate the ‘back-offices’ of our North America fascias by
transforming our supply chain and harmonising our systems
infrastructure in the region. While our roots are in the UK, and our
head office remains in Bury where the company was founded,
thisacquisition makes the US our largest market by revenue.
The completion of our acquisition of Courir is another exciting
milestone for our Complementary Concepts strategy in Europe.
Itbroadens the JD Group's customer reach, adding a more female,
fashion-conscious and older customer base to complement the
Group's core customers.
Board Developments
Following the appointments in FY24, during FY25 we saw a
number of other changes and reorganisation across the Board
andCommittees. Firstly, Suzi Williams stepped down as a Non-
Executive Director and as Chair of the Remuneration Committee
on 1 November 2024, having completed the crucial foundational
phase of remuneration governance change for the Group. In
preparation for the next phase, the Remuneration Committee
Chair role was passed to Angela Luger. Angela joined the Board
and the Remuneration Committee in June 2023 and previously
had chaired the Remuneration Committee at Manchester Airport
Group and SCS plc. In turn, given Angela's new role as
Remuneration Committee Chair, she stood down as ESG
Committee Chair, although remaining as a valued member, and
Darren Shapland replaced her in this role on 1 October 2024.
Darren joined the Board in June 2023 and has served as
amember of the ESG Committee since its inception.
I was also delighted to welcome Prama Bhatt to the Board as
aNon-Executive Director (NED), with effect from 23 September
2024. Prama is our first US-based NED and this is particularly
valuable to us in the context of our US ambitions going forward.
She brings a wealth of relevant experience to the Board including
a deep understanding of the US retail landscape and significant
expertise in omnichannel retailing, which is a key part of our
strategy going forward. She has joined the Nominations
Committee and the ESG Committee as well as the boards of
JD'sUS subsidiaries, Genesis Holdings Inc. and Genesis Topco Inc.
This appointment followed the departure of Mahbobeh Sabetnia,
aNon-Executive Director and member of the Remuneration
Committee, who stepped down from the Board after the FY24
AGM in June. Overall, we reduced the Board by one member,
withthe purpose being that a smaller Board allows more focus.
Following a review of executive remuneration, we shared a set of
proposals for a revised Director’s Remuneration Policy with our
main shareholders, after the year end. Subsequent to the feedback
received, we will be seeking shareholder approval of the revised
policy at the Annual General Meeting on 2 July 2025. The updated
policy reflects the evolution of our management team, the Group’s
significant expansion into North America, and both a need to
harmonise remuneration across the Group and to align Key
Performance Indicators with the Group’s updated strategy.
People and Communities
Our 97,000+ colleagues across the Group remain our key asset.
We simply could not do what we do without the skills and
expertise of our people across the Group. For example, every day
our buying and merchandising teams leverage their in-depth
knowledge and understanding of our customers to ensure we
have the right products, in the right places, at the right times.
Andas a multi-brand retailer, I’m delighted to see how successful
we have been this year in delivering strong growth among a
number of emerging and re-emerging brands. On behalf of the
Board, I would like to extend my thanks to them all for their hard
work, resilience and dedication over the past year. As we look
ahead, I am confident that their talent and expertise will contribute
significantly to the delivery of our updated strategy.
Dividends and Share Buyback Programme
The Board proposes paying a final dividend of 0.67 pence per
ordinary share (FY24 final dividend: 0.60p), bringing the total
proposed dividend for the 52 weeks to 1 February 2025 to 1.00p
(FY24 total dividend: 0.90p) per ordinary share. This payout
maintains the same one third/ two thirds ratio that we applied last
year. Subject to shareholder approval at our AGM on 2 July 2025,
the proposed final dividend will be paid on 11 July 2025 to all
shareholders on the register at 13June 2025.
Reflecting our strong cash generation and in line with our
capitalallocation framework, post year-end we announced
thecommencement of an initial £100 million share buyback
programme. The programme commenced on 10 April 2025
andisexpected to complete no later than 31 July 2025.
Outlook
The economic outlook is currently extremely unpredictable with
so many moving parts and potential impacts on consumer
confidence. As a result, we are taking a cautious view of the new
financial year. That said, I am confident that the Group is well
positioned to navigate these challenges and deliver improving
returns to our shareholders.
Andrew Higginson
Chair
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Chief Executive
Officer’s Review
Régis Schultz
Chief Executive Officer
>200
New JD stores opened
in the year
79k
Colleague voices heard in
global engagement survey
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In April 2025, we updated
ourmedium-term plans to
capitalise onour organic growth
opportunities in North America
and Europe, deliver productivity
and efficiency benefits from
theinvestments we have made,
andutilise our strong cash
generation to deliver improved
returns for ourshareholders.”
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Chief Executive
Officer’s Review
Régis Schultz
Chief Executive Officer
>200
New JD stores opened
in the year
79k
Colleague voices heard in
global engagement survey
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In April 2025, we updated
ourmedium-term plans to
capitalise onour organic growth
opportunities in North America
and Europe, deliver productivity
and efficiency benefits from
theinvestments we have made,
andutilise our strong cash
generation to deliver improved
returns for ourshareholders.”
JD has been moving at a fast pace over the last two years,
investing in both our organic and inorganic growth to build further
on our position as aleading global sports fashion powerhouse and
developing ourpeople and leadership, our infrastructure and
cyber security, and our governance and control environment to
ensure we have strong foundations for the future.
At the same time, the market has evolved and it is now the time
for us to move to the next phase of our strategy by adapting our
plan to focus on organic growth and on profit, leveraging the last
two years’ investments to improve returns to our shareholders.
In early 2023, we set out our strategic plan under four pillars
(JDFirst, Complementary Concepts, Beyond Physical Retail
andPeople, Partners & Communities). JD Brand First is our
commitment to putting JD at the forefront of premium sports
fashion, ensuring we are first choice for consumers around the
globe. It is the number one priority for the Group. Complementary
Concepts is about broadening our reach across customers,
geographies and categories, and contributing to ourgrowing
scale. Beyond Physical Retail is our investment in infrastructure
and digital transformation to support our long-term growth. And
last, but most importantly, People, Partners & Communities, which
reflects our commitment to our people, to our partners and to the
communities in which we operate, and ensuring we have a ‘fit for
purpose’ governance and control environment.
We also set out three financial objectives, which we referred to
asthe “triple double” - double-digit revenue growth, double-digit
profit margin and double-digit market shares.
Reflecting on successes and challenges
Before we shift our focus to the future, I would like to reflect on
the significant progress we have made, the many successes we
have achieved, as well as a number of challenges that we have
faced, over the past two years.
– JD First. The JD brand now has a consistent customer
proposition across the world, leveraging our products,
merchandising, marketing expertise and retail excellence.
Weprioritised accelerating our store opening and conversion
programme to capture a larger share of the market, setting out
an ambitious target to open at least 200 new JD fascia stores
per year, including conversions, with a disciplined approach and
athree year payback hurdle. We have delivered this with 468
stores opened, including 62 Finish Line conversions, and the
vast majority achieving the hurdle rate.
– Complementary Concepts. In FY24, we simplified the Group
with the divestment of around 30 non-strategic businesses
andthe acquisition of the minority interests in ISRG and MIG.
InFY25, we completed the two strategically important
acquisitions of Hibbett in the US and Courir inEurope.
– Beyond Physical Retail. We expanded our loyalty programme,
JD STATUS, from the US into the UK, Ireland, France and
Eastern Europe with more than eight million active accounts,
andwe have a developing omnichannel model which will
provide profitable opportunities going forward. We are also
improving our customer fulfilment through opening three major
distribution centres (DCs), one in each of our core geographies,
in the last 12 months.
– People, Partners & Communities. We aim to be the best for
ourpeople, with developments including launching a global
engagement survey and rolling out new systems to help unite
our people across all territories, including a new global app-
based colleague communications platform, ‘JD NOW’. We
expanded our community impact this year, including launching
the JD UP programme, which has an exciting opportunity for a
wider, international rollout, and improving our ESG
performance, which is an integral part of our Group strategy.
We have also faced some challenges along the way.
– Market growth. The global sportswear market continues to
grow, but at a slower pace than we have seen in recent years.
This has resulted in lower than anticipated like-for-like (LFL)
sales growth*. At the same time, we have continued to invest in
our long-term growth and in strengthening our infrastructure.
This combination has had an impact on our profitability over the
last two years, with effects differing by region. For example,
across Europe where we have seen great success in the south,
but Germany has been more challenging, due largely to higher
people costs and a lower consumer appetite for sports fashion.
– Investment in infrastructure and people. A key priority for us
was a need to upgrade the infrastructure, capability, governance
and control environment to be fit for purpose for a group of JD’s
scale and reach. The programmes to address these areas have
taken longer, and cost more, than we anticipated originally.
TheEuropean DC project in Heerlen has been delayed by a year
leading to increased costs. On this project, we have changed
theleadership and I am pleased to say we are now back on track.
In addition, we have spent around £60m to secure and improve
the resilience of our IT infrastructure and back-office systems.
Wehave started the programme to put in place IT general
controls, build a cyber security function and upgrade outdated
ornon-supported legacy systems. As these are accounted
forincreasingly as operating expenditure rather than capital
expenditure, these investments result in a higher short-term
impact on our P&L. We have also developed our Head Office
functions and have seen general wage inflation, especially as
minimum wages defined by laws have increased significantly
across most of the markets we operate in. This, and our decision
to remove age banding, has resulted in an additional people cost
of more than £100m over the last two years. These investments
are the right choices for the long-term healthof the business.
– M&A. We are excited by the opportunities from our recent
acquisition of Courir, but the length of time it took to get
European Commission clearance, the added cost that this
brought and the scale of the remedies to secure clearance
haveheld us back.
Updated strategic framework and financial targets
As announced after our period end in April 2025, we are now
moving into the next phase of our medium-term plan, within
which we will take actions to improve shareholder returns.
Wearerefining our growth strategy to take into account the
slower market growth, the achievements of the last two years
andthe lessons learned.
– In North America, we already have a scale business but there
remains a significant growth opportunity. We will increase
revenue and profit by growing space for the JD fascia,
optimising our Complementary Concepts and delivering both
supply chain and back-office synergies.
– In Europe, we are refining our approach and building on areas
where we have seen success. Our plan is to grow revenue and
improve the operating margin to high single-digits. Having
finally completed the Courir acquisition, we will leverage its
strong position in France and use JD’s strong position in Spain
and Italy to accelerate the expansion of Courir in those markets.
We will also reduce costs and improve efficiencies in the supply
chain to drive margin improvement in Europe. We are now very
well positioned to develop our market share and our profit. In
the UK, which is a maturing market as well as our most
established market, our focus will be on productivity. We have a
market-leading concept and a good store estate with almost all
stores providing a positive contribution. However, it is important
we continue to invest and manage our space and locations
tomaintain that leadership, ensuring a consistent customer
experience and optimising productivity across the estate.
Wewill also invest to support continued growth in our
profitable and highly successful gyms business.
– In the rest of the world, our strategy is to grow the JD fascia,
which will be expanded mainly via our capital-light
franchisemodel.
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1 Source: Euromonitor International Limited, Apparel & Footwear 2024 edition, retail value RSP incl. sales tax, US$,year on year exchange rate, current terms.
• Throughout this Annual Report,‘*’ indicates the use of alternative performance measures. Please refer to pages 246 to 252 for further information including reconciliations
tostatutory measures.
Chief Executive Officer’s Review continued
We are also focused on leveraging our investments in our
infrastructure and controls to deliver efficiencies. We have opened
three new DCs in thelast 12 months. In Europe, Heerlenwill soon
begin to deliver the desired benefits as the project is back on track
and expected to deliver automated store orders for the FY26
peak and then for online orders in FY27. In the US, Morgan Hill will
become our first multibrand DC in North America by the end of
this financial year. This will unlock improvements in the speed
tomarket for our west coast stores and give us the blueprint to
move our other North American DCs in the US to multi fascia
operations. This will deliver efficiencies and increase capacity for
the future. In addition, we have opened a major automated DC in
Australia to increase capacity to support our growth.
On digital, we are nearing the end of a two-year investment
toreplatform our omnichannel businesses. We will be live in the
US before the end of 2025, with the UK and European markets to
follow. Inboth cases, we are incurring significant double-running
costs and constraints in delivering a full omnichannel experience
to ourcustomers.
We are also working on opportunities for efficiencies at our
HeadOffices in the UK and in Europe, as well as post-acquisition
synergies across the back-office functions in North America.
Overall, we have adapted our strategy with the updated
framework and regional priorities driving our capital allocation to
support the key areas of growth and improving our profitability.
This will see 70% of our capital expenditure directed to North
America and Europe with the balance spread across the rest of
the Group.
In terms of financial targets, over the medium term we will grow
our organic revenue* ahead of the market, which we estimate to
be around 2-3% per annum, led by our investment in space
growth – thecontribution from space growth* should settle at
around 3-4% ofrevenue in the medium term as our capex
becomes more targeted and the LFL* base grows larger.
Beyond FY26, we will start to leverage the investments we have
made in our people and our infrastructure, and drive efficiencies
throughout the Group. Accordingly, over the medium term, we
aim to deliver profit growth ahead of revenue growth.
Finally, we will focus on continuing to build our strong cash
generation through a more disciplined approach to capital
allocation via a more focused store investment programme and
lower supply chain investment now that the major infrastructure
investment programmes are behind us; and using a capital light
franchise model to expand outside our existing markets. As a
result, we will start to improve our return on capital and enhance
our returns to shareholders.
Review of FY25 performance
Turning to our performance in the 52 weeks to 1 February 2025,
we achieved revenue* of£11,458m, 10.2% up on the comparative
52-week period*, in whatwas again a volatile market. In constant
currency, revenue growth* was 12.0%. LFL sales growth* was 0.3%
and there was a 5.5% benefit from new stores, leading to organic
sales growth* of 5.8%. This organic sales growth* exceeded
estimated market value growth of 3.8%
(1)
in 2024, meaning we
again outperformed the market organically. A key element to our
ability to outperform the market consistently is the strength and
agility of our multibrand model. We have a consistent focus on
offering our customers the brands and products that they want,
which means we need to move quickly at all times to adapt to
changes in fashion.
We are a highly cash generative business with £1.2bn of operating
cashflow net of lease repayments. At the end of the period, we
had net cash before lease liabilities* on our balance sheet of
£52mand, during the year, we spent £1.4bn on the acquisitions
ofHibbett and Courir, including repayment of debt acquired.
Region
From a geographical point of view, all regions grew revenue*
intheperiod other than the UK, which was impacted principally
bynon-core divestments made over the last two years. The UK
declined 4.1% to £3,205m. Europe revenue increased 9.5% to
£3,510m, including two months of Courir. North America revenue*
increased 27% to £4,242m, including six months of Hibbett.
AsiaPacific revenue increased 0.4% to £501m, as the exit of non-
core businesses in the year reduced revenue by £30m (c.6%).
Growth in our newer markets resulted in a better business balance
geographically with North America generating 37% of revenue,
Europe 31%, the UK 28% and Asia Pacific 4%.
Channel
Our retail stores grew revenue* by 15.7% to £9,081m with our
online channel declining by 2.9% to £2,251m, reflecting the
continued shift back to pre-pandemic online participation, our
focus on online profitability and our investment in stores. As a
result, stores now represent 79% of our revenue and online is 20%,
with other, mainly gym memberships, at 1%. With our focus on
customer satisfaction, we are consciously channel agnostic,
facilitating theflexibility we need to meet customers’ individual
purchasing requirements, whether it be buying in store, buying
online and delivered to home, or buying online and delivered to
store.
Category
Footwear continued to perform strongly with revenue* growth
of15.2% to £6,819m, while apparel revenue grew 4.2% to £3,550m
driven primarily by our acquisitions being mostly footwear-
focused. Accessories revenue grew by 4.8% to £702m. This
meanswe continue to build a good mix of products delivering a
‘head-to-toe’ shopping opportunity with footwear at60%, apparel
at 31% and accessories at 6% of revenue. Other is 3% and includes
outdoor living equipment and gym memberships.
Store numbers
We ended the period with 4,850 stores worldwide, 1,533 more
than at the start of the period, due mainly to the acquisitions of
Hibbett and Courir, which added 1,485 stores. Across all fascias,
311stores were opened and 263 stores were closed, including
66from Finish Line and Macy’s as we continued to rationalise our
store portfolio. We also converted 29 stores to JD from Finish Line
in the US and a further 21 to JD from other European fascias.
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