JD Sports Fashion has revealed plans to grow revenues and margins by double digits over the next five years alongside a rapid store expansion under a strategy outlined by new chief executive Regis Schultz.
The plan also includes capital expenditure of £500-600 million (€560-673m) a year, with 50-60 percent of the spend focused on store expansion in underpenetrated markets. This should translate to 250-350 new stores a year. The news sent JD Sports shares up sharply in London.
JD has forecast cash generation from operating activities of £1 billion (€1.12bn) per annum as it seeks to double its market share in key regions.
Schultz took over as CEO last September, after the ousting of long-standing executive chairman Peter Cowgill in May of 2022.
JD Sports wants to become the “leading sports-fashion powerhouse”
“Today marks a new, distinct chapter in the growth story of JD as we set our plans to become the leading global sports-fashion powerhouse,” Schultz said in a statement ahead of a presentation for investors and analysts.
“Building on our strong existing position and attractive long-term market dynamics, we see significant growth opportunities ahead by expanding JD internationally, notably in North America and Europe. We will also be enhancing our omnichannel retail offering, investing in technology and analytics, and leveraging our long-term strategic brand partnerships, to better serve more customers.”
