First-half revenue fell 0.7% to £5.9bn (as expected) before currency moves, acquisitions and disposals. The decline was put down to weak demand and heavy discounting. Sales fell in every region except Asia, its smallest market.
Underlying pre-tax profits fell by 19% to £0.3bn, driven by a lower markup and higher operating costs.
Free cash outflow improved from £68mn to £18mn, helped by lower capital expenditures. Net debt, including lease liabilities, was down £0.2bn to £2.9bn.
JD Sports still expects underlying pre-tax profit of £700-800mn and free cash flow of £460-520mn this year
The group has started the final tranche of the £200mn buyback and increased the interim dividend 21% to 0.40p per share.
The shares were broadly flat in early trading.
Our view
HL view to follow.
JD Sports key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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