JD Sports bolsters North American presence, reports revenue growth ahead of Hibbett acquisition

JD Sports has reported a revenue increase of 8 percent in North America, reaching £3,413.5 million ($4,340.4 million) for the fiscal year ended February 3. This growth comes ahead of its planned $1.08 billion acquisition of Hibbett, Inc., expected to finalize in the second half of the year, which will significantly boost its presence in the region. The growth was led by JD/Finish Line, DTLR, and Shoe Palace, which collectively saw a 10 percent increase to £3,069.0 million ($3,902.3 million). Despite this, the region’s operating profit before adjustments fell by 7 percent to £317.1 million ($403.2 million), affected by reduced gross margins due to promotional pressures and investments in growth.

JD Sports views the upcoming Hibbett acquisition as a strategic enhancement to its North American operations, projecting an increase in profitability in the first full year post-acquisition. The deal is pending approval from Hibbett shareholders and U.S. antitrust regulators. The company also detailed its expansion efforts, noting the conversion of 57 Finish Line stores to the JD banner and the opening of 40 new JD stores across strategic locations including Aventura Mall in Florida and American Dream in New Jersey. Additionally, JD Sports plans to introduce 30 new community stores under the Shoe Palace or DTLR banners, maintaining a focus on malls for the JD Sports brand.

Overall, JD Sports Fashion’s global revenues grew by 4 percent to £10,542.0 million ($13,404.5 million), with operating profit up by 15 percent to £927.2 million ($1.18 billion). Despite these gains, gross margin dipped slightly due to heightened promotional activities, leading to a reported 11% decline in profit before adjustments to £692.6 million ($880.7 million). As the new fiscal quarter begins, the retailer has observed increased promotional activities across all regions, with a slight dip in comparable sales by 0.7 percent against the previous year’s 14.5 percent rise. JD Sports reaffirmed its EBIT forecast for FY25, ranging from £955.0 million to £1,035 million ($1.21-$1.32 billion).