JD Sports Improves Profit Forecast and Updates Management Plan
Retailer JD Sports said on Thursday that annual profits would exceed expectations as it laid out plans to split the role of chairman and general manager.
The sportswear chain has had to close stores in different countries at various times for closures. But he has seen growth online during the pandemic and said trade since it recently reopened “has been particularly encouraging” in the UK.
He said: “Loyal and new customers, looking to refresh their personal style as hospitality and workplaces begin to reopen, have responded positively to JD’s innovative and exciting product line.”
The company noted that footfall remains fragile and that online traffic is at “high levels.” JD Sports also applauded the good demand in the United States.
Profits before taxes and exceptional items for the year ended January 2022 are expected to be at least £ 550million. Analysts had listed £ 524.5million.
JD Sports shares rose 35.6p to 954p following the update leading up to the company’s annual meeting today.
Some shareholder advisory groups have criticized the £ 4.3million bonus for Executive Chairman Peter Cowgill in a year of government support.
The retailer previously said the bulk of the bonus was approved by shareholders in 2019, but today decided to resolve a number of issues.
The company said the UK leave helped secure support for the thousands of people it employs.
He added: “We will consider repaying government support on salary costs we received as stores were temporarily closed during the current year. We will defer a final decision on this until there is certainty on both the complete relaxation of restrictions and the consequences of any further foreclosures during our peak trading period this winter. “
The FTSE 100 company also said it intends to split the current role of executive chairman and chief executive officer ahead of the 2022 annual meeting and “a full process will begin shortly.”
Cowgill has served as the chain’s executive chairman since 2004, and also assumed the responsibilities of managing director a decade later.
It is more common in the City to have a separate boss and president.