JD Sports is witnessing a steep rise in its profit, which has enabled the firm to cross a new milestone. The owner of the Go Outdoors, Size, and Blacks has confirmed that the profit earned from the pre-tax has risen to £121.9 Million, which is the one-fifth hike of its previous value.
The share prices of the sportswear retailer have also risen by 6% to 518p. This has increased the net worth of the company to around £5 Billion with 1,700 stores across the world and 500 outlets in the UK.
The Executive Chairman of JD Sports, Peter Cowgill stated that though the retail sector of the company is facing strong challenges, the elevated profits in Ireland and the UK was inevitable. According to him, the profit clearly reflects the positive endeavor of the company in designing a multichannel proposition, which resulted in the conjugation of digital and physical retail.
JD Sports is listed under the index of FTSE 250, which is meant for the mid-market firms. Laith Khalaf, an analyst from the Hargreaves Lansdown stated that the JD Sports is about to enter the index of FTSE 100.
Sports Direct is the rival retailer of the JD Sports. However, the net worth of the latter is double than the former, which is around £1.9 billion. In fact, JD Sports tops the market in this sector and has even defeated Marks & Spencer, which is around £4.75 billion.
According to the GlobalData’s retail analyst, Amy Higginbotham, the mass acceptance of the athleisure has contributed to a major portion of the success of the JD Sports. Also, the availability of the exclusive products from the top brands has helped the firm reach the peak of success.
They have also invested in the physical stores, which in conjugation with the aforementioned factors produced the outcome.