JD Sports’ CEO said that low unemployment in its key demographic would drive the company to break the £1 billion profit for the first time this year.
The UK leisurewear group saw its pre-tax profits fall to A$823 million (£440m) for the year to January 28, due mainly to a A$1.03 billion non-cash charge related to “cleaning up” previous acquisitions by selling off smaller brands.
Revenues are up 19 per cent, and CEO Régis Schultz said a societal shift to leisurewear on top of low unemployment rates will help steer the company to profits of over £1 billion for the first time.
“Our key customer is a young adult, and the young adult today has more possibilities to get a job today than ever,” Schultz said.
“Unemployment is at a low level, that means that they get jobs and they can buy the sneakers they love, and I think that’s really helping us a lot.
“If unemployment stays low and inflation comes down, we should see a good bounce back [in sales] in the UK.”
JD Sports has 3,400 stores in 32 countries.
