D Sports sales raced past £10 billion for the first time this year, as the trainers and leisure wear giant cemented its position as one of the most successful retailers in the UK.
With the high street flailing and internet competition intense, JD continues to grow, including in America, where many UK retailers including Tesco and M&S have fallen flat in the past.
JD shares, up almost 2000% in the last ten years, could keep rising say analysts.
The business is now valued at £8.8 billion, more than Next, generally regarded as the best run retailer in Britain.
For the year to January sales jumped from £8.5 billion to £10.1 billion. Profits are nearing the £1 billion mark at £991 million, up from £947 million. It is one of the biggest global sellers of Adidas, Puma and New Balance goods.
New chief executive Régis Schultz, the replacement for industry legend Peter Cowgill, said this morning: “The beauty of JD, the magic of JD, is that our buyers are the best in the world. We don’t rely on one brand, we don’t rely on one product…there is always something new coming.”
While inflation has forced prices higher by between 5% and 10%, the mostly youthful customers typically don’t have mortgages.
“Unemployment is very low, and the young adult is benefiting from this situation,” said Schultz, brought in due to corporate governance concerns around the all-powerful Cowgill, who has both chair and CEO.
Cowgill built the business up over 18 years and was paid £5.5 million in an exit deal.
Chairman Andrew Higginson said: “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.”
There are now 138 JD stores in the US. Sainsbury’s, as well as Marks & Spencer, Dixons, Tesco and HMV all tried and failed in America.
JD is hoping for another 500-600 new US stores in time, a huge achievement if reached.
