JD Sports Fashion said it considers Australia a principal market in Asia Pacific on the back of the inauguration of the flagship store in Sydney, which the company says is its most successful new store opening globally.
The UK-headquartered sports fashion retailer opened the flagship store in Sydney in August and said it is on track to relocate its Sydney distribution centre to a new expanded site in FY24, as it anticipates the next stage of growth.
JD Sports opened four premium sports fashion stores in Asia Pacific during the first half of FY23 and ended the period with 84 stores in the region. Meanwhile, it closed eight stores in the region during the period as it withdrew from the South Korean market.
JD Sports noted it finalised the acquisition of non-controlling interests across Malaysia, Thailand, and Singapore after the period, a move that is expected to result in further growth for the brand in these markets.
Sports fashion in Asia Pacific during the 26 weeks to July 29 posted an organic growth of 25.6 per cent in revenue to £230.9 million ($441 million). Revenue from other retail fascias in the region surged 100 per cent organically to £1.4 million.
Globally, the company ended the period with 3347 stores. The group booked a 11.9 per cent organic growth in revenue to £4.78 billion while profit before tax jumped 25.8 per cent to £375.2 million, reflecting performance of sports fashion and outdoor stores.
Gross profit margin declined to 48.0 per cent.
“We have made good progress delivering on our strategic pillars, focusing on expanding the JD brand and we will open more than 200 JD stores worldwide in this financial period,” said Régis Schultz, CEO at JD Sports Fashion.
Schultz said that the company aims to accelerate its brand growth in Europe through purchasing non-controlling interest in ISRG and MIG and the acquisition of GAP stores in France.
“This is alongside the proposed acquisition of Courir in the region, which will, when completed, enhance the Group’s existing portfolio of complementary concepts, bringing into the company its market-leading focus on the female customer,” said Schultz.
