JD Sports Fashion expect profits to exceed £1 billion

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JD Sports Fashion Plc (LON:JD), the leading global Sports Fashion retailer, has announced its Unaudited Preliminary Results for the 52 weeks ended 28 January 2023 (2022: 52 weeks ended 29 January 2022).

Record result with clear strategy for future growth

	2023(unaudited)			2022
	£m			£m

Revenue		10,125.0	8,563.0

Gross profit %		47.8%	49.1%

Performance Highlights ^(a)

EBITDA before adjusted items*		1,696.9	1,606.8
Depreciation / amortisation		(636.6)	(593.1)

Operating profit (before adjusted items)*		1,060.3	1,013.7
Net interest expense		(68.9)	(66.5)

Profit before tax and adjusted items*		991.4	947.2

Adjusted items (see note 3)*		(550.5)	(292.5)

Profit before tax		440.9	654.7

Net cash at period end ^(b)		1,469.3	1,185.9

Statutory Measures

Operating profit		509.8	721.2
Net interest expense		(68.9)	(66.5)

Profit before tax		440.9	654.7


Basic earnings per ordinary share		2.76p	7.17p
Adjusted earnings per ordinary share*		13.39p	12.84p

Total dividend payable per ordinary share		0.80p	0.35p

a) Further detail setting out the background to the alternative performance measures and a reconciliation to statutory measures is provided after the Chief Financial Officer’s Statement. In addition, throughout this release ‘*’ indicates the use of other alternative performance measures which are also explained after the Chief Financial Officer’s Statement and are reconciled to the statutory measures

b) Net cash consists of cash and cash equivalents less interest-bearing loans and borrowings

Andrew Higginson, Chair, said:

“In July 2022 I had the great privilege of being appointed the Chair of the JD Group. This followed the departure of Peter Cowgill who had led the business so successfully for the previous 18 years. I found a business that had a strong leadership team, committed staff and a supportive majority shareholder in Pentland. The business was in tune with its customers, respected by its branded suppliers, was trading strongly and had a significant number of opportunities for growth ahead of it.

“This has been another period of excellent progress for the Group with a profit before tax and adjusted items* for the 52 week period ended 28 January 2023 of £991.4 million (52 week period ended 29 January 2022: £947.2 million). This is a record result for the Group and I must pay tribute to the skills, resilience and positive attitude of the colleagues in our businesses who have not let the leadership changes distract from their focus on the consumer and our offer. The total charge for the adjusted items* was £550.5 million (2022: £292.5 million) which principally relates to a non-cash movement in the present value of future put and call options held with minority shareholders in certain subsidiary businesses, impairments of intangible assets on acquisitions in prior periods and losses incurred in divesting our non-core branded fashion businesses. Consequently, the profit before tax was £440.9 million (2022: £654.7 million).

“The progress that the Group is making in its global markets is reflected by the fact that organic sales at constant exchange rates* were 12% ahead of the prior period with a significant strengthening in trade through the second half of the period, particularly in North America, as the supply of product from a number of the international brands normalised. We are pleased with the positive progress that we are making in North America and it is our intention to accelerate the rollout of JD in this important market as we believe it will deliver long term sustainable benefits.

“JD continues to be the partner of choice for many international brands who see our premium fascias as the natural global home for their latest ranges and freshest new styles. The announcement in September 2022 that JD was Nike’s first European retail partner for its connected partnership, designed to enhance the shopping experience of customers through access to an additional range of Nike member-exclusive products and experiences, is proof that our relationship with these brands and our access to product is stronger than ever.

“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.

“Whilst we are encouraged by the resilient nature of the consumer demand in the current period to date, we remain conscious of the headwinds that prevail at this time including the general global macro-economic and geopolitical situation. Against this backdrop, assuming current exchange rates, we expect that the Group’s headline profit before tax and adjusted items* for the 53 week period ending 3 February 2024 will be in line with the current average consensus expectations of £1.03 billion.”

Group Highlights

· Régis Schultz joined the Group as Chief Executive Officer with a vision for a new and distinct chapter in the growth story of JD presented to both the market and colleagues in February 2023. Key objectives for the next five years include:

o Double digit revenue growth on average per annum

o Double digit market share in key regions

o Double digit operating margin

o Cash generation from operating activities of £1 billion per annum with the priority for cash being reinvestment in growth including increased capital expenditure of £500 million to £600 million per annum with 50% to 60% of annual spend focused on store expansion in underpenetrated markets with 250 to 350 new JD Sports stores per annum

· Record result for the 52 week period ended 28 January 2023 with profit before tax and adjusted items* of £991.4 million (52 week period ended 29 January 2022: £947.2 million) with the global premium Sports Fashion retail fascias delivering a combined profit before tax and adjusted items* of £827.6 million (2022: £774.4 million)

· Profit before tax of £440.9 million (2022: £654.7 million) includes a total charge for adjusted items* of £550.5 million (2022: £292.5 million) which principally relates 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

· Organic sales at constant exchange rates* 12% ahead of the prior period with a significant strengthening in trade through the second half of the period, particularly in North America, as the supply of product from a number of the international brands normalised

· International development of JD continues to progress positively:

o 138 stores now trading as JD in North America with the new stores in the period including a flagship store in Chicago

o 58 net new JD stores opened across Europe including first stores in Hungary, Lithuania and Greece

o Seven JD stores in Indonesia and six JD stores in Israel opened under Joint Venture arrangements in the period meaning that the core JD fascia now has a retail presence in 28 countries with the rollout of JD to be accelerated in line with the “JD Brand First” strategy

· Board and governance strengthened with the appointment of additional Non-Executive Directors and the creation of a new Disclosure Committee

· Net cash balance at the end of the period, being the peak of the cash cycle, of £1,469.3 million (2022: £1,185.9 million) to power the ongoing development opportunities

· An enhanced final dividend of 0.67p (2022: 0.35p) bringing the total dividend payable for the period to 0.80p (2022: 0.35p) per ordinary share which returns the dividend cover*, when measured relative to the adjusted earnings per ordinary share*, to the levels paid in the period prior to the COVID-19 pandemic (2019: 0.34p – restated)

· The Group continues to make excellent progress on its environmental and sustainable sourcing work programmes with external recognition of this from the award of an A- grade by the CDP for both Climate Change and Water Security and the classification of the Group as ‘low risk’ by Sustainalytics, one of the world’s leading independent ESG research and analytics businesses

· Key financial information of the two business segments is tabulated below:

52 week period to 28 January 2023 (unaudited)

	Sports Fashion	Outdoor	Unallocated	Total
	£m	£m	£m	£m

Revenue	9,560.6	564.4	–	10,125.0

Gross profit %	48.1%	42.2%	–	47.8%

Performance Highlights

Operating profit before adjusted items*	1,043.5	16.8	–	1,060.3
Net interest expense¹	(66.1)	(2.8)	–	(68.9)

Profit before tax and adjusted items*	977.4	14.0	–	991.4
Adjusted items*	(510.7)	(39.8)	–	(550.5)

Profit / (loss) before tax	466.7	(25.8)	–	440.9

Statutory Measures

Operating profit / (loss)	532.8	(23.0)	–	509.8
Net interest expense¹	(66.1)	(2.8)	–	(68.9)

Profit / (loss) before tax	466.7	(25.8)	–	440.9

¹ The Group considers that certain net funding costs are cross-divisional in nature and cannot be allocated between the segments on a meaningful basis.

52 week period to 29 January 2022

	Sports Fashion	Outdoor	Unallocated	Total
	£m	£m	£m	£m

Revenue	8,049.6	513.4	–	8,563.0

Gross profit %	49.5%	43.9%	–	49.1%

Performance Highlights

Operating profit before adjusted items*	985.5	28.2	–	1,013.7
Net interest expense¹	(57.2)	(2.3)	(7.0)	(66.5)

Profit / (loss) before tax and adjusted items*	928.3	25.9	(7.0)	947.2
Adjusted items*	(292.5)	–	–	(292.5)

Profit / (loss) before tax	635.8	25.9	(7.0)	654.7

Statutory Measures

Operating profit	693.0	28.2	–	721.2
Net interest expense¹	(57.2)	(2.3)	(7.0)	(66.5)

Profit / (loss) before tax	635.8	25.9	(7.0)	654.7

¹ The Group considers that certain net funding costs are cross-divisional in nature and cannot be allocated between the segments on a meaningful basis.

Chair’s Statement

Introduction

In July 2022 I had the great privilege of being appointed the Chair of the JD Group. This followed the departure of Peter Cowgill who had led the business so successfully for the previous 18 years. I found a business that had a strong leadership team, committed staff and a supportive majority shareholder in Pentland. The business was in tune with its customers, respected by its branded suppliers, was trading strongly and had a significant number of opportunities for growth ahead of it. Before going any further, it is important to thank Peter and his team for developing such a great business.

The challenges that the business faced were also clear. There was a significant “governance deficit” in a listed business of JD’s size. Starting with the combination of Chair and CEO roles, the business had not raised standards of Governance to the expected norms of a FTSE 100 business. The Non-Executive Directors, whilst bringing much relevant experience, had a lack of Plc experience.

In many ways, the business, which is highly profitable and with significant net cash, was well controlled and conservatively managed. However, it relied too heavily on a few key individuals and on informal controls which were more appropriate for a smaller business. The sort of formal Board oversight and detailed scrutiny that would be normal in a business of this scale were not always present.

When I joined the business, work had already begun on reforming and improving the Governance framework. Helen Ashton, in her role as Chair of the Audit and Risk Committee, deserves our particular thanks; as does Kath Smith, Senior Independent Director, who stepped in as acting CEO for a crucial four month period after Peter’s departure. We have made further strong progress on Governance this year, against the additional challenge of a mandatory rotation of auditors, although there is still plenty to do to embed a change of culture around the new controls framework.

The success of the business had afforded many opportunities to grow. However, the strategy outside of the JD Brand had become a little opaque and was in need of some clarification.

In September 2022, the arrival of our new CEO, Régis Schultz led to a reappraisal of this strategy and a narrowing of the business focus. We have subsequently disposed of a number of Fashion businesses and are concentrating our resources on fewer initiatives. There has also been a simplification in the organisation of the business with the number of direct reports into the CEO reduced from over 30.

We are now starting the next, and distinct chapter in the growth story of JD. The business is in fine health, with a brand and proposition that is clearly loved by consumers, and with the financial resources to deliver further expansion in underpenetrated and strategically important markets.

JD continues to be the partner of choice for many international brands who see our premium fascias as the natural global home for their latest ranges and freshest new styles. The announcement in September 2022 that JD was Nike’s first European retail partner for its connected partnership, designed to enhance the shopping experience of customers through access to an additional range of Nike member-exclusive products and experiences, is proof that our relationship with these brands and our access to product is stronger than ever. The ambitious growth plans that we announced in our Capital Markets Event on 2 February 2023 are underpinned by the availability of additional product from these brands.

JD’s success over a number of years has come from a relentless focus on ensuring that, at all times, our fascias deliver a compelling and differentiated proposition to the consumer with an attention-grabbing theatre both in stores and online and a product and brand mix that is emotionally engaging, exclusive and continually evolving.

The challenge for the Board is to deliver a step change in the governance framework and culture within the business, whilst allowing the entrepreneurial flair to flourish. In doing so, JD will have the right foundations from which to progress and support our new CEO and his Executive team.

Financial Summary

This has been another period of excellent progress for the Group with a profit before tax and adjusted items* for the 52 week period ended 28 January 2023 of £991.4 million (52 week period ended 29 January 2022: £947.2 million). This is a record result for the Group and I must pay tribute to the skills, resilience and positive attitude of the colleagues in our businesses who have not let the leadership changes distract from their focus on the consumer and our offer. The total charge for the adjusted items* was £550.5 million (2022: £292.5 million) which principally relates to a non-cash movement in the present value of future put and call options held by minority shareholders in certain subsidiary businesses, impairments of intangible assets on acquisitions in prior periods and losses incurred in divesting our non-core branded fashion businesses. Consequently, the profit before tax was £440.9 million (2022: £654.7 million).

The progress that the Group is making in its global markets is reflected by the fact that organic sales at constant exchange rates* were 12% ahead of the prior period with a significant strengthening in trade through the second half of the period, particularly in North America, as the supply of product from a number of the international brands normalised. We are pleased with the positive progress that we are making in North America and it is our intention to accelerate the rollout of JD in this important market as we believe it will deliver long term sustainable benefits.

Board Developments

Recruitment of New CEO

We were delighted to welcome Régis Schultz to the Group in September 2022 as Chief Executive Officer. We firmly believe that Régis has the right characteristics and experience to lead the Group through the next phase of its journey. In particular, we believe that his expertise of global retailing, including in Asia and the Middle East, combined with his ability to drive transformational change through an omnichannel approach to retail, perfectly complement the existing skills both in the Board and the wider Senior Leadership team.

Since joining the Group, Régis has spent time with the local teams in all of our principal markets to enhance his knowledge of the Group’s global operations. The knowledge that he gained in this period was key in helping him shape his vision for the continued international development of our brands and the further enhancement of our already market-leading multichannel customer experience. His vision for a new and distinct chapter in the growth story of JD was subsequently presented to both the market and our colleagues in February 2023 with four key themes:

· JD Brand First: Our priority is the development of JD and we intend to accelerate the store opening programme in most of our markets including speeding up the conversion of the Finish Line stores to JD in the United States. We will extend our footprint in underpenetrated markets through both organic growth and acquisition with franchising an opportunity in certain new markets. Whilst we will be accelerating the rollout of the JD stores, there will be no compromises to the disciplined process that we follow. All stores will still be subject to rigorous financial assessment prior to leases being committed and the fitting out of those stores to be carried out to our usual high standards.

· Importance of Complementary Concepts: JD’s proposition is capable of operating at scale in multiple markets. However, it is important to recognise that JD is not necessarily the right banner in all situations. For example, the market in the United States is more segmented between malls and neighbourhoods than Europe and so our neighbourhood community fascias of Shoe Palace and DTLR ensure that the Group has a proposition for all consumers. Further, our elevated Size? and Footpatrol banners are critical in providing valuable market intelligence through seeding new trends and ranges which can then be scaled through JD. We will strengthen the offers in all of our complementary fascias and expand them where appropriate in their markets.

· Beyond Physical Retail: JD has expanded both its physical and digital channels successfully in recent years but the two channels are not as integrated as they could be. The technology investments that we are making, including loyalty, will make our proposition more omnichannel and give us a single view of the customer. Further, we firmly believe that JD, as a brand, has a deep relationship of trust with its consumers and that this relationship can be extended into other categories to create a lifestyle ecosystem of relevant products and services. We have already started to do this through the rollout of JD Gyms but we believe that this can be extended to other categories such as gaming and music, potentially through third party partnerships.

· People, Partners & Communities: We want to be the best partner for the brands, the best partner for the communities where we operate and provide our colleagues with the best opportunities to develop their individual careers and to support them in achieving their ambitions.

Other Board Updates

During the period, Neil Greenhalgh informed the Board that he wished to step down from his role as Chief Financial Officer, a role he has filled since November 2018. We have identified a permanent successor for this important role with Dominic Platt who is currently the Chief Financial Officer at BGL Group Limited and has formerly held a number of senior finance roles at Darty Plc. Neil will leave the Group later in the summer, and I would like to thank him for the significant part that he has played in the development of the Group over the last 19 years.

Since joining the Board, together with the Nominations Committee, I have taken the opportunity to review the mix of skills and experience on the Board. In this regard, we were pleased to announce the appointment of Ian Dyson, currently Chair of Currys Plc who joined the Board on 9 March 2023. In addition, Angela Luger, formerly CEO of N Brown Group Plc and Darren Shapland, currently Chair of Topps Tiles Plc will join the Board as of 1 June 2023. All of our new Non-Executive Directors have a strong track record across consumer facing industries and bring much needed Plc experience.

Elsewhere, Suzi Williams, who joined the Board on 16 May 2022, has taken up the role of Remuneration Committee Chair and Helen Ashton has been appointed Chair of our newly formed Disclosure Committee whilst I have been appointed as Chair of the Nominations Committee.

Finally, I am pleased that we were able to reach an amicable and constructive way forward with Peter Cowgill as he has an unparalleled knowledge, built over 18 years, which we did not want to lose. The arrangement that we have agreed includes a binding set of new and enhanced restrictive covenants for a two-year period to September 2024 and a consultancy agreement for a three-year period to September 2025.

Buy or Sell Notice re Iberian Sports Retail Group, S.L. (‘ISRG’)

Following the receipt of a formal buy / sell notice from Balaiko Firaja Invest, S.L. and Sonae Holdings, S.A. (together the ‘Minority Parties’), who collectively hold 49.98% of Iberian Sports Retail Group, S.L. (‘ISRG’), the Group is now engaged in formal discussions with the Minority Parties with regards to the future ownership structure of ISRG, including its shareholding in the JD businesses across Iberia. There are three possible outcomes from this process although it is expected to be later in the summer before there is clarity as to which outcome will be progressed by the parties:

· The Group acquires the 49.98% holding in ISRG currently held by the Minority Parties.

· The Minority Parties acquire the Group’s 50.02% holding in ISRG and the Group simultaneously acquires the Minority Parties interest in JD across Iberia. This would result in the divestment of the Sprinter, Sport Zone, Deporvillage and Bodytone businesses in Iberia together with the Sprinter, Aktiesport and Perry Sport businesses in the Netherlands.

· No change to existing shareholdings.

Governance and Assurance

Governance Update

As previously advised, a number of issues were identified in the prior period around the Group’s compliance with both its regulatory obligations and the UK Corporate Governance Code. The Board subsequently undertook a Control, Risk and Compliance Target Operating Model review, the outcome of which was a programme of works to deliver greater formalisation in governance systems, risk management recording, the documentation and appraisal of internal controls and the mechanisms for reporting relevant matters to the regulatory authorities.

Working with external advisors, the Group continues to make good progress on this programme and the Board reaffirms its commitment to making the necessary resource available, internal and external, to deliver this programme and ensure that these changes become fully embedded in the day-to-day operations of the Group. In this regard, additional resource has already been engaged in the key areas of Assurance, Risk and Legal. The Board believes that it is on track to deliver the first phase of this programme by early 2024 although there will be continuous evolution through longer term initiatives even after the current initial project is completed.

Update on Cyber Security

On 30 January 2023, the Group announced that it had been the target of a cyber incident which resulted in the unauthorised access to a system that contained customer data relating to some online orders placed between November 2018 and October 2020. Whilst the affected data was limited, the Group took the necessary immediate steps to investigate and respond to the incident, including working with leading cyber security experts. The Group also engaged with the relevant authorities, including the UK’s Information Commissioner’s Office (‘ICO’), as appropriate.

The ICO have now formally advised that they will not be taking any enforcement action in respect of this incident although they have highlighted several areas where they believe JD needs to demonstrate improvement. The Group is committed to addressing these recommendations at pace. At this stage, no other regulatory body has indicated that it intends to take any enforcement action although the Group is aware that not all of the relevant regulators have concluded their investigations. The Group will continue to co-operate fully with the relevant global regulatory bodies, including the ICO, on all appropriate matters.

This particular incident, whilst limited in extent and quickly contained, has highlighted the need for the Group to enhance its security control over the technology estate. In this regard, the Group has appointed Boston Consulting Group who will work with best-in-class suppliers to design key tactical and strategic solutions for an efficient and better-integrated cyber vendor ecosystem. We are confident that this multi-vendor approach is the best solution to deliver outcomes at pace whilst ensuring value for money. In addition, the Group has now appointed an interim Chief Information Security Officer (‘CISO’) with the recruitment of both a permanent CISO and a Chief Information Technology Officer (‘CITO’) ongoing.

Change of Auditor

KPMG LLP has acted as auditor to the Company since its flotation in 1996. They have been in office in a period of tremendous growth and rapid global expansion for the Group and I would like to thank all the staff in the various offices around the world who have worked on the Group’s audit over the years. Subject to approval by shareholders at the forthcoming Annual General Meeting, I am pleased to report that Deloitte LLP will take over as auditor to the Group for the results to 3 February 2024. On behalf of the Board, I would like to formally welcome the team from Deloitte to the Group and I look forward to working with them.

Dividends

The Board proposes paying a final dividend of 0.67p (2022: 0.35p) bringing the total dividend payable for the 52 week period ended 28 January 2023 to 0.80p (52 week period ended 29 January 2022: 0.35p) per ordinary share. Whilst this is a significant increase on the prior period, the Board believes that it is appropriate as it returns the dividend cover*, when measured relative to the adjusted earnings per ordinary share*, to the levels paid in the period prior to the COVID-19 pandemic (2019: 0.34p – restated). Subject to shareholder approval at our AGM, the proposed final dividend will be paid on 4 August 2023 to all shareholders on the register at 7 July 2023. As we indicated in our Capital Markets Event, we continue to believe that it is in the longer term interests of all shareholders to prioritise the available funding for our ongoing development opportunities including investing in both stores and infrastructure as well as potential acquisitions.

The adjusted earnings per ordinary share* has increased by 4.3% to 13.39p (2022: 12.84p).

The basic earnings per ordinary share has decreased by 61.5% to 2.76p (2022: 7.17p).

Outlook

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.

Whilst we are encouraged by the resilient nature of the consumer demand in the current period to date, we remain conscious of the headwinds that prevail at this time including the general global macro-economic and geopolitical situation. Against this backdrop, assuming current exchange rates, we expect that the Group’s headline profit before tax and adjusted items* for the 53 week period ending 3 February 2024 will be in line with the current average consensus expectations of £1.03 billion.

Our next scheduled update will take place upon the announcement of our Interim Results. We will confirm a date for these results in due course.

Andrew Higginson

Chair

17 May 2023

Chief Executive Officer’s Statement

I am very pleased to report that the Group continues to make excellent progress with the Group headline profit before tax and adjusted items* increasing by a further 5% to £991.4 million (2022: £947.2 million). To further increase the Group’s profitability when the first half was impacted by the well-publicised international supply chain challenges, which resulted in the reduced availability of certain key footwear styles, gives me great confidence in both the strength of our market leading sports fashion proposition and the expertise of our colleagues.

Since joining the Group in September 2022, I have undertaken a full strategic review of the Group with the results of this presented at a Capital Markets Event on 2 February 2023. I have described this as a new and distinct chapter in the growth story of JD and, like any new chapter, there will be some changes. I concluded at an early stage that the branded fashion businesses within our Sports Fashion segment, whilst attractive, were not integral to the development of our core sports fashion proposition and so we have subsequently divested a number of businesses in this area. The costs of this exercise together with costs associated with closing our South Korea business, other impairments on prior period acquisitions and movements in the present value of put and call options resulted in adjusted items* for the 52 week period ending 28 January 2023 of £550.5 million (52 week period ending 29 January 2022: £292.5 million). Consequently, the Group profit before tax decreased to £440.9 million (2022: £654.7 million).

The JD fascia has an outstanding reputation with both consumers and our international brand partners and we are convinced that the most significant opportunities lie in the continued international development of this business. I also recognise the importance of having complementary fascias which leverage the JD concept and so, for example, we will also be investing in our seeder concepts of Size? And Footpatrol and looking to strengthen our community fascias of Shoe Palace and DTLR.

Sports Fashion

UK and Republic of Ireland

We are encouraged by another robust performance in the premium Sports Fashion retail fascias in the UK and Republic of Ireland which delivered a profit before tax and adjusted items (excluding IP charges)* of £356.2 million (2022: £386.4 million). It should be recognised that this period’s result includes a full annual charge for business rates whereas, in the prior period, business rates were only fully payable from July when the UK Government withdrew its COVID-19 related rates relief support programme. This performance was underpinned by resilient consumer demand with growth in organic sales at constant exchange rates* compared to the prior period of 12% with this revenue growth accelerating through the second half of the period.

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The UK and Republic of Ireland is the most mature market for the JD and Size? Fascias with developments such as the new flagship store at the Metrocentre in Newcastle and a relocation at Fosse Park in Leicester, which is one of the biggest out of town retail parks in the UK, demonstrating our ongoing commitment to continue raising standards in the retail of premium sports fashion product ranges. The UK and Republic of Ireland is also the market where the JD and Size? Fascias have the greatest density of stores relative to the population with 444 stores at the period end (2022: 436). We maintain our belief that the store base at its current scale contributes positively to our development as it raises brand awareness, provides consumers with an opportunity to physically see and try the product, and enables us to offer multiple delivery points.

Elsewhere, our non-core branded fashion businesses including Tessuti, Giulio and Mainline Menswear delivered a total profit before tax and adjusted items* of £19.7 million (2022: £33.9 million) which included £7.0 million (2022: £19.6 million) from the businesses which have now been divested (including Footasylum).

Europe

We are also pleased by the recovery that we have seen in our premium Sports Fashion businesses in Europe with our combined businesses delivering a profit before tax and adjusted items (excluding IP charges)* of £92.6 million (2022: £29.2 million). Clearly the stores being open for the full period has been very beneficial in driving an improved performance with growth in organic sales at constant exchange rates* compared to the prior period of 34%.

The performance of JD in Europe is also benefitting from actions that we have taken to enhance our service proposition. This includes investing in local logistics capabilities with the Group expanding its warehouse footprint in Southern Belgium and Northern France. Longer term, the Group has now taken possession of the 620,000 sqft facility in Heerlen with initial fitting out of the site ongoing. Fulfilment to stores from this facility is still expected to commence in the first half of 2024.

We firmly believe in the long-term opportunity for JD in Europe and we remain committed to expanding our physical retail presence in all markets at pace. A net 58 new JD stores opened in the period across the continent which included the conversion of 23 stores which formerly traded as Chausport in France. Working in conjunction with the MIG team, there were 12 new stores in Eastern Europe, including the first JD stores in Hungary and Lithuania. Further, working with the Cosmos team, the Group opened its first JD store in Greece in the period with a second store in Greece and our first store in Cyprus also opened by this team in the new financial period. The JD team in Europe is also managing the joint venture in Israel with six stores opened in the period and one further store opened to date in the new financial period.

Elsewhere, our other fascias, which include our businesses focused on the Sporting Goods market, continue to adapt their businesses as appropriate for their markets with a net 10 new stores for the combined Sprinter and Sport Zone businesses in Iberia and a net nine new Cosmos stores across Greece and Cyprus. The MIG team in Eastern Europe opened their first Sizeer stores in Bosnia, Croatia, Serbia and Slovenia although these were offset by closures of both Sizeer stores and the lower price point 50 Style stores in other markets, particularly Poland. There were also a net 12 closures for the Perry Sport and Aktiesport businesses in the Netherlands. As with our premium Sports Fashion fascias, these businesses benefitted from the stores being open for the full period with the profit before tax and adjusted items* increasing to £60.8 million (2022: £51.3 million).

Recently, I was delighted to announce that we had entered into exclusive negotiations on the potential acquisition of the Courir business in Europe. Based in Paris, this business has 313 stores across six countries in Europe. Courir operates a differentiated proposition to JD with its product mix, brand strategies and store designs directed more towards female consumers. In this regard, it perfectly complements JD and is capable of being rolled out internationally alongside JD. We would anticipate that this acquisition will formally close later in the year after a mandatory consultation process with the Courir works council and an anti-trust review. In addition, we have also been successful in our bid to acquire nine stores in France which are currently trading as Gap. These stores, which will all be converted to JD, will significantly enhance our presence in key city centre locations, particularly in Paris.

North America

This was very much a year of ‘two halves’ with the performance in the first half, particularly the first quarter, negatively impacted by the well-publicised international supply chain challenges which resulted in the reduced availability of certain key footwear styles. These supply chain challenges were felt most acutely in North America, particularly in the first half, as footwear represents more than 80% of total sales which is the highest proportion of any of our markets. However, we are very encouraged by the fact that trading improved rapidly through the second half as the availability recovered and so, over the full period, there was growth in organic sales at constant exchange rates* compared to the prior period of 5%. North America remains our most significant market in premium Sports Fashion in terms of revenues.

Given the trading challenges in the first half of the period, we are very pleased that profitability has largely been maintained at the prior period levels with our premium Sports Fashion businesses delivering a profit before tax and adjusted items (excluding IP charges)* of £317.1 million (2022: £322.2 million).

The roll-out of the JD fascia continues at pace with 138 stores (2022: 89 stores) trading as JD at the end of the period, which includes 10 stores (2022: two stores) in Canada. There are also two stores (2022: one store) trading as Size? In Canada. The net 41 new stores for JD in the United States in the period included 24 locations where Finish Line previously traded with 15 direct conversions of the same space and a further nine stores relocated to facilitate JD opening in a site which is either more appropriately sized or is in a location which attracts higher levels of footfall. In addition, JD opened its second flagship store in the United States with a store on State Street in Chicago.

Looking ahead, it is our intention to accelerate the roll out of the JD fascia in North America with a target to deliver an additional 500 to 600 JD stores over the next five years. These new stores will come from both new stores and the conversion of the remaining standalone Finish Line stores with 392 stores trading under this banner as at 28 January 2023 (2022: 427 stores).

The Shoe Palace and DTLR businesses also continue to make progress in their markets with seven new Shoe Palace stores and a net two new DTLR stores opened in the period. These fascias continue to perform an important complementary role with their focus on consumers that are more neighbourhood based.

Elsewhere, it remains our intention to retain the Finish Line name as a concession in the Macy’s department stores with a product offer which is more focused on families. As with our premium businesses, there were short term trading challenges in the first half of the period but the performance improved through the second half. Ultimately, as with our premium fascias, the profitability was largely maintained with these concessions delivering a profit before tax and adjusted items* of £44.7 million (2022: £45.4 million). Whilst the terms of our contract with Macy’s permit us to close a number of concessions each year, our enhanced confidence in this part of the business is reflected by the fact that the number of concession that we operate has been maintained at 289 stores with two openings and two closures.

Asia Pacific

The Group continues to make good progress in the Asia Pacific region with our premium Sports Fashion businesses delivering a profit before tax and adjusted items (excluding IP charges)* of £61.7 million (2022: £36.6 million) with growth in organic sales at constant exchange rates* compared to the prior period of 36%.

The principal reason for the strength of this performance is a continued excellent performance in Australia where we have opened an additional seven stores in the period bringing the total at the end of the period to 47 stores (2022: 40 stores). Our management team in Australia is also responsible for our operations in New Zealand where we have made a very encouraging start with three stores now trading (2022: one store).

Elsewhere, other markets, particularly Malaysia and Thailand have seen a strong recovery with footfall progressively returning to pre COVID-19 levels after three years of trading restrictions. However, we have now decided to exit South Korea as a market with a wind-down of our operations ongoing. This was a difficult decision as we recognise that many people had invested a significant amount of time to try and make JD a success in that market. However, the onset of COVID-19 three years ago and the subsequent loss of tourism into the country had a very detrimental impact on our development and, whilst the challenges of COVID-19 continue to ease, this market was slower to recover than other countries in the region.

Elsewhere, working with our joint venture partner, PT Erajaya Swasembada Tb, there were seven stores trading in Indonesia at the end of the period with one further opening to date in the new financial period.

Gyms

Our consumer surveys tell us that, whilst our consumers love the JD stores and our retail experience, they also love the JD brand itself. The JD Gyms are the first example of how this relationship between the brand and its consumers can be extended beyond physical retail into other relevant categories with our market-leading, premium low-cost gyms proposition providing an environment and motivating atmosphere in which all participants can achieve their fitness goals.

After opening a further net five gyms in the period, the Group had 79 sites in the UK at the end of the period with 75 sites trading as JD and four sites still bannered as X4L, of which one has subsequently closed in the new financial period. We have a strong pipeline of opportunities for our gyms business and would expect to open at least a similar number of new gyms in the UK in the current financial period.

The Group also has a further eight gyms operating under the Gymnation name in the United Arab Emirates. Given the lack of JD physical retail presence in the Middle East then there are no plans currently to convert these gyms to JD and the business will continue to expand in its markets using the Gymnation name.

During the period we broadened our leisure interests with the acquisition of 60% of Total Swimming Holdings Limited and its subsidiaries, which includes Swim!, the first multi-site operator of dedicated children’s ‘learn to swim’ centres in the UK with 10 sites operating at the end of the period. Initial cash consideration of £11.1 million has been paid with additional consideration of up to £4.0 million potentially payable if certain targets and future performance criteria are achieved. As at the date of this report contingent consideration of £2.0 million was considered potentially payable.

Financial Performance

This has been another excellent period for our Sports Fashion businesses with these businesses delivering a profit before tax and adjusted items* of £977.4 million (2022: £928.3 million).

This result was largely driven by the enduring strength of our premium Sports Fashion fascias which delivered an aggregate profit before tax and adjusted items* of £827.6 million (2022: £774.4 million) largely as a consequence of the post pandemic recovery that we saw across our businesses in Europe.

Overall gross margin in Sports Fashion decreased slightly to 48.1% (2022: 49.5%) largely due to the return of some promotional activity in North America as the supply chain normalised together with some short term promotional activity in the Fashion fascias which have now largely been divested.

After recognising aggregate adjusted items* in the period of £510.7 million (2022: £292.5 million) relating to the loss on disposal of the fashion businesses together with costs associated with closing our South Korea business, other impairments on prior period acquisitions and movements in the present value of put and call options, the profit before tax in Sports Fashion was £466.7 million (2022: £635.8 million).

Outdoor

This has been another period of revenue growth in our Outdoor businesses with growth in organic sales at constant exchange rates* compared to the prior period of 4%. It is clear that, whilst international travel has now fully reopened, spending time outdoors remains popular with people appreciating the physical and mental health benefits that it provides. In particular, our businesses saw a strong demand throughout the period for activity-based categories such as fishing, cycling and camping. However, the exceptionally dry and warm weather in the UK through the key Summer period depressed the sale of the higher margin apparel and footwear ranges.

We continue to invest in all of our fascias with the store developments in the period including new Go Outdoors stores in Bury and Launceston and the relocation of our stores in Swindon, Gateshead and Derby. We have also extended our trial of Go Outdoors on the High Street with the conversion of an additional 13 stores which previously traded as either Blacks or Millets. In addition, we have enhanced Go Outdoors’ position as an authoritative nationwide retailer in the key activity-based categories of cycling, fishing and equestrian with two new Wheelbase cycling concessions in the stores at Coventry and Stockton to complement the Fishing Republic concessions which are now in more than 50 stores and the Naylors Equestrian concessions which are now in seven stores.

Financial Performance

Whilst revenues have increased, the activity-based categories that have grown deliver lower gross margins which is reflected in overall gross margins reducing by 1.7% to 42.2% (2022: 43.9%). Consequently, the profit before tax and adjusted items* reduced to £14.0 million (2022: £25.9 million). We are confident that we are still making progress in this sector but we accept that there is still work to do on sharpening the proposition so that it is has greater year round relevance and is less reliant on particular weather events.

There were adjusted items* in the period relating to impairments on prior period acquisitions which totalled £39.8 million (2022: £nil) which means that the loss before tax in Outdoor was £25.8 million (2022: profit before tax of £25.9 million).

Logistics Developments

UK and Republic of Ireland

The proportion of online orders for UK customers that are being fulfilled from the 515,000 sqft facility in Derby continues to increase with this site expected to fulfil the majority of UK online orders by the time of the peak period later in the year. Approximately £65 million has been invested at this site to date, of which £55 million was incurred this financial period, with the full cost of this initial development expected to rise to approximately £70 million by the middle of 2023.

As previously indicated, we expect to have exited the temporary e-fulfilment facility at Sherburn, Leeds, which was operated by Clipper Logistics Plc, by the end of Summer 2023.

Europe

Initial fitting out of the 620,000 sqft facility in Heerlen, South-East Netherlands, has now commenced after the site was formally handed over in March 2023. This was later than originally anticipated and so the capex incurred to the end of January 2023 was only €5 million. At this stage, we would still expect that the total cost over the life of the project to bring the site into full operational use will be approximately €95 million with the shipping of products to stores expected to commence in the first half of 2024 to be followed by the fulfilment of online orders later in that year.

In the meantime, we have expanded our base of smaller facilities in Southern Belgium and Northern France so that we can further increase the amount of product which is fulfilled locally for JD in Western Europe. Currently, more than 60% of deliveries to JD stores and 40% of online orders from JD customers in Western Europe are being fulfilled out of these facilities with the rest processed from the UK.

Elsewhere in Europe, the shipping of product to JD stores in Eastern Europe and Greece is integrated into the infrastructures of MIG and Cosmos respectively. The majority of JD online orders in these markets are also fulfilled locally.

North America

Our businesses continue to make progress on a number of infrastructure projects which will enhance both our collective operational effectiveness and the consumer experience. This includes a project to install automation equipment at Shoe Palace’s new 512,000 sqft warehouse facility in Morgan Hill, California. We anticipate that this project will cost approximately $70 million with a planned go live in early 2025.

People

In my relatively short time with the Group I have been able to visit all of our principal locations and I have seen first-hand that we have talent, energy and commitment at every level in our businesses. I know the strength of engagement that we have with our people and it is pleasing that this has been recognised externally with JD voted as the best company for “Ability to Attract, Develop and Retain Top Talent” in the 2022 study of Britain’s Most Admired Companies. In the same study, JD was also awarded the overall sector prize for “Retailers – Broadline & Home”.

I have now completed a full review of our organisational structure with clear principles of responsibility and well defined spans of control to help lay the foundation for our future success. I have already begun to communicate these changes which include structuring our operations by brand with global business unit Managing Directors. In this regard, I can confirm that Michael Armstrong, formerly the Group Buying Director, has been appointed as the JD Global Managing Director. By definition, the width of the product offer in JD means that Michael will continue to oversee all key brand relationships. We are also supporting our global business units through the creation of centres of excellence which will have specific measurable KPIs that are closely aligned to our business priorities. We will recruit additional resource where it is necessary to help deliver our growth plans.

I am absolutely committed to giving all of our colleagues a quality work experience which is challenging yet rewarding and I look forward to working with all of our teams in writing the next distinct chapter in the growth story of JD.

Régis Schultz

Chief Executive Officer

17 May 2023

Chief Financial Officer’s Statement

Financial Performance

Revenue and Gross Margin

This period was the first time since 2019 that all of our businesses have traded free from COVID-19 related restrictions. This was a positive to revenues in many countries, particularly in Europe, although revenues in the United States were depressed in the first half as a result of reduced availability of certain key footwear styles.

Ultimately, total revenue for the Group for the 52 week period ended 28 January 2023 increased to £10,125.0 million (52 week period ended 29 January 2022: £8,563.0 million) with growth in organic sales at constant exchange rates* compared to the prior period of 12%.

Total gross margin for the period has reduced slightly to 47.8% (2022: 49.1%) with the return to normalised stock levels in North America through the second half of the period leading to the return of some promotional activity consistent with expectations. Encouragingly, gross margins are ahead of the levels prior to the pandemic (2020: 47.0%) which is a fair reflection of the underlying progress that the Group has made on managing the overall levels of markdown and promotional activity across our global businesses.

Profit Before Tax

Profit before tax and adjusted items* was 5% higher than the prior period at £991.4 million (2022: £947.2 million). This is a record result for the Group with a particularly strong performance through the second half of the period as the supply of key footwear styles normalised. This represents 9.8% of revenues (2022: 11.1%) which, whilst lower than last year, is more representative of what the Group would expect to deliver in a normalised trading environment free from government fiscal support and other interventions. It is also consistent with the targets that we set out in our recent Capital Markets Event.

As a result of the increase in the adjusted items* to £550.5 million (2022: £292.5 million), the Group profit before tax decreased to £440.9 million (2022: £654.7 million).

We are particularly encouraged with the performance of our premium Sports Fashion fascias in North America where, notwithstanding the trading challenges in the first half of the period, the profitability has largely been maintained at the prior period levels with these businesses delivering a profit before tax and adjusted items (excluding IP charges)* of £317.1 million (2022: £322.2 million). After recognising intergroup recharges for the use of the JD intellectual property of £23.7 million (2022: £24.6 million) and adjusted items* of £303.9 million (2022: £239.7 million), which principally relates to a non-cash movement in the present value of future put and call options held with the minority shareholders of Genesis Topco Inc which is the intermediate holding company for our businesses in the United States, the loss before tax in the premium Sports Fashion fascias in North America was £10.5 million (2022: profit before tax £57.9 million).

We are also particularly encouraged by the post-pandemic recovery of our premium Sports Fashion fascias in Europe which delivered a profit before tax and adjusted items (excluding IP charges)* of £92.6 million (2022: £29.2 million). After recognising intergroup recharges for the use of the JD intellectual property of £51.6 million (2022: £20.6 million) and a credit for adjusted items* of £0.3 million (2022: credit of £1.1 million), the profit before tax in the premium Sports Fashion fascias in Europe was £41.3 million (2022: £9.7 million).

Total operating costs in the period before adjusted items* were £3,812.9 million which represented 37.7% of revenue (2022: £3,221.5 million being 37.6% of revenue) with the increase in costs reflecting the end of the support programmes that various governments put in place to support corporates through the COVID-19 pandemic.

There were adjusted items* in the period of £550.5 million (2022: £292.5 million) relating to the loss incurred on the divestment of our non-core UK fashion businesses, costs associated with closing our South Korea business, movements in the present value of put and call options and other impairments on prior period acquisitions:

	2023(unaudited)	2022
	£m	£m

Impairments of intangible assets and investments (1)	137.2	–

Items that are unusual in nature or outside of the normal course of business:
Movement in present value of put and call options (2)	296.2	292.7
Insurance settlement for DTLR (3)	–	(16.6)

Items as a result of acquisitions, divestments, major business changes or restructuring:
Divestment and restructuring (4)	129.6	16.4
Deferred consideration release (5)	(12.5)	–

Administrative expenses – adjusted items*	550.5	292.5

1. The impairment in the current period primarily relates to the impairment of goodwill and fascia name arising on the acquisition of Deporvillage (£24.7 million), Hairburst (£21.6 million), Leisure Lakes (£21.1 million), Wheelbase (£18.7 million), Bodytone (£12.4 million), Missy Empire (£10.2 million), Livestock (£7.1 million), Wellgosh (£1.0 million), Oi Polloi (£0.7 million) and Philip Browne (£0.1 million). In addition there is an impairment charge for the investment in Gym King of £19.6 million.

2. Movement in the present value of the liabilities in respect of put and call options as re-measured at each reporting date (£295.0 million), comprising Genesis Topco Inc charge of £280.8 million (2022: charge of £258.7 million), Iberian Sports Retail Group charge of £19.6 million (2022: charge of £31.6 million), Marketing Investment Group S.A: a charge of £0.5 million (2022: charge of £1.7 million) and a credit of £5.9 million (2022: charge of £0.7 million) in relation to the other put and call options held by non-controlling interests. Also included is a charge of £1.2 million relating to an element of put and call option agreements that have been treated as a long term employee benefit under IAS 19.

3. Insurance settlement proceeds in the prior period related to a pre-acquisition claim for business interruption by DTLR Villa LLC. As the claim was a contingent asset at the date of acquisition, this was not recognised in the assets acquired in the fair value table in Note 5.

4. The divestment and restructuring charge relates to the divestment of UK-based non-core fashion business assets (£106.7 million) and Footasylum (£14.8 million) plus the closure costs associated with JD’s announced withdrawal from the South Korean market in the current period (£8.1 million) being business restructuring costs of £2.1 million and a charge of £6.0 million in relation to the impairment of non-current assets. (2022: The impact of the restructuring of Spodis SA in the prior period, including a charge of £5.5 million in relation to the impairment of tangible assets and business restructuring costs of £10.9 million).

5. Acquisition related release of deferred consideration for Leisure Lakes (£10.5 million) and Total Swimming Holdings Limited (£2.0 million).

Cash and Working Capital

The strong performance in the period is reflected in the cash generation with the net cash balance at the end of the period increasing to £1,469.3 million (2022: £1,185.9 million).

Our capacity to generate cash in our retail operations remains as strong as ever. However, the net cash in the period has been impacted by a general restocking of our businesses in North America, as the supply from the international brands normalised after the first quarter, and increased investment in capital expenditure as we expand our geographical footprint further, to enhance the consumer proposition and upgrade our operational infrastructure.

Inventories, net of provisions, across the Group at the end of the period were £1,466.4 million (2022: £989.4 million). Within this, inventories, net of provisions, in our businesses in North America increased to $581.7 million (2022: $262.9 million) as the flow of product reverted to normal levels. Forward cover in the core JD business in the UK / Europe at the end of the period was 10 weeks which was broadly consistent with the prior period (2022: nine weeks) with a continual focus on robust stock management disciplines.

Gross capital expenditure* (excluding disposal costs) increased to £359.3 million (2022: £247.9 million) with the primary focus of our capital expenditure continuing to be our physical retail fascias* where spend in the period was £213.4 million (2022: £124.0 million). The increased investment that the Group is making in its logistics infrastructure is reflected in the fact that spend on capital expenditure on logistics* increased to £80.8 million (2022: £33.5 million). Consistent with the messaging in our recent Capital Markets Event, our growth plans over the next five years will be powered by an increase in the spend on capital expenditure with an annual spend of up to £600 million per annum with 50% to 60% of this investment dedicated to growing our store base in underpenetrated markets.

Earnings per Ordinary Share

The basic earnings per ordinary share decreased to 2.76p (2022: 7.17p) consistent with the reduction in the Group profit before tax.

The adjusted* earnings per ordinary share increased to 13.39p (2022: 12.84p).

Environmental and Sustainable Sourcing Update

The Group continues to make excellent progress with its environmental and sustainable sourcing work programmes. We are pleased that our efforts in this area are receiving the external recognition that we believe they deserve with Sustainalytics, one of the world’s leading independent ESG research and analytics businesses, classifying JD as ‘low risk’ and placing it in the top 5% of a list of more than 500 global retail businesses.

Progress in the period on environmental and sustainable sourcing can be consolidated into three main pillars:

Reducing the Impact of Climate Change

· Endorsement of the Group’s strategy for climate-related risk assessment was verified via the award of ‘A-‘ grades in December 2022 by the CDP for both Climate Change and Water Security which are both three grades above our sector average

· The Group achieved its target of 100% renewable energy use for operationally controlled stores* across the UK, Republic of Ireland and Western Europe by the end of the reporting period

· The Group completed a number of projects to further reduce its future carbon emissions:

o Retrofitted low wattage LED lights across 25 stores and gyms

o Installed solar panels at three Go Outdoors stores, the Go Outdoors Distribution Centre in Middlewich, UK and the Shoe Palace Distribution Centre in Morgan Hills, California

o Enhanced the control of the electrical systems at a further 140 sites through the installation of Building Management Systems (‘BMS’) with the electricity usage at more than 500 sites now monitored and controlled via BMS systems

o Proof of concept completed on Voltage Optimisation technology

o Alternative water systems deployed across 62 gyms

o Additional Electric Vehicle changepoints installed at key office and warehouse locations

· A key supply chain partner transitioned to a 100% renewable energy tariff and installed solar panels at its manufacturing site, reducing the carbon footprint of the famous JD duffle bag

Sustainable Sourcing

· Regular engagement with our largest third-party brands, monitoring their progress to attain global leadership for sustainable product innovation

· ‘Better Cotton’ usage in our private label business now stands at over 98%

· All private label garment transit bags are now made using post industrial waste making them 100% recycled and 100% recyclable

· Sustainability awareness extended through the #IAMSUSTAINABLE online training courses which are now available in 11 countries across the Group with region specific content and language to maximise relevance and colleague engagement

Circular Economy and Recycling

· Participation in Textiles 2030 has supported the delivery of a multi-fascia collaboration on circular business models and customer awareness initiatives. Our first module, Circularity In Business, involved an extensive working group designing a Take Back Scheme for tents within our Outdoor business where we look to repair and return tents to the original customer for further use. For previously returned stock we inspect and repair these tents and, where possible, make them available as ‘pre-loved’ resale items in selected stores. We have also successfully inspected and repaired over 600 cycles, which have been resold via two dedicated stores

· For the third successive year we retained our ‘Zero Waste to Landfill’ accreditation at our Kingsway warehouse. Further, our Group Head Office in Bury, UK, and ISRG Head Office and Logistics Centre in Alicante, Spain have also achieved this accreditation

· Our store and Distribution Centre asset take back programme enabled the recovery and reuse of over 14 tonnes of hangers and 236 tonnes of plastic totes

Store Portfolio (unaudited)

During the period, store numbers have moved as follows:

	Period Start	New Stores	Transfers	Net Disposed	Closures	Period End

*Premium Sports Fashion*
UK & Republic of Ireland	436	16	4	–	(12)	444
Europe	377	52	23	–	(17)	435
Asia Pacific	79	15	–	–	(6)	88
North America	931	52	–	–	(28)	955

	1,823	135	27	–	(63)	1,922

*Other Fascias*
UK & Republic of Ireland (1)	151	10	(4)	(75)	(12)	70
Europe	889	66	(23)	–	(82)	850
Asia Pacific	2	6	–	–	–	8
North America	289	2	–	–	(2)	289

	1,331	84	(27)	(75)	(96)	1,217


Total Sports Fashion	3,154	219	–	(75)	(159)	3,139


Total Outdoor	248	11	–	–	(8)	251


Total Group	3,402	230	–	(75)	(167)	3,390

1) Net disposed in the period consists of:

a. Acquisition of one store trading as Philip Browne Menswear on 10 May 2022

b. Disposal of 62 stores trading as Footasylum on 5 August 2022

c. Disposal of five stores trading as Base Childrenswear on 16 December 2022

d. Disposal of five stores trading as Kids Cavern on 16 December 2022

e. Disposal of three stores trading as Pretty Green on 16 December 2022

f. Disposal of one store trading as Watch Shop on 16 December 2022

The 70 stores at the end of the period includes 62 stores which were disposed shortly after the period end on 7 February 2023:

a. 38 stores trading as Tessuti (incl Xile Clothing)

b. 16 stores trading as Scotts

c. Five stores trading as Choice

d. Two stores trading as Giulio

e. One store trading as Cricket

In addition, the Group now has 13 JD stores operating under joint venture arrangements with partners in Indonesia and Israel as follows:

	Period Start	New Stores	Period End

Indonesia	–	7	7
Israel	–	6	6

	–	13	13

After opening a total of six gyms in the period, the Group had a total of 87 gyms at the end of the period across the UK and United Arab Emirates (‘UAE’).