(Alliance News) - JD Sports Fashion PLC on Wednesday reported a stronger year of sales for financial 2023, though profit declined.

In the financial year that ended January 28, the Lancashire-based sportswear retailer said revenue rose by 18% to GBP10.13 billion from GBP8.56 billion the year before. This beat the revenue forecast by Shore Capital Markets of GBP9.67 billion.

However, pretax profit fell by 33% to GBP440.9 million from GBP654.7 million

The lower profit was due to higher adjusting items, "principally [related] to a non-cash movement in the present value of future put and call options held with minority shareholders in certain subsidiary businesses and losses incurred in divesting our non-core branded fashion businesses", JD Sports explained.

Operating profit was down 29% to GBP509.8 million from GBP721.2 million.

Since the year-end, JD Sports said organic constant currency sales growth has been over 15%.

Chair Andrew Higginson said: "The group is reassured with trading to date in the new financial period with growth in organic sales at constant exchange rates of more than 15% after 13 weeks. This performance is further evidence that consumers worldwide are more attracted than ever to JD's differentiated proposition with its attention-grabbing in-store experience, breadth in the range of brands and availability of key styles."

Looking ahead, JD Sports expects to meet current average market consensus expectations for adjusted pretax profit of GBP1.03 billion in financial 2024, which would be up from GBP991.4 million achieved in financial 2023.

JD raised its final dividend to 0.67p per share from 0.35p a year before, bringing the annual total to 0.80p, up from 0.35p a year before.

Shares were down 5.2% at 161.45 pence each on Wednesday morning in London.

By Xindi Wei, Alliance News reporter

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