Pretax profits at the main Irish unit of sports retailer JD Sports last year slumped 21 per cent to €18.76 million.
New accounts for John David Sports Fashion (Ireland) Ltd show the business recorded the decrease in pretax profits as revenues increased by 13 per cent to €189.03 million in the 12 months to the end of January 29th last year.
The sports retailer increased revenues as the number of outlets rose from 19 to 22.
The directors state that the company continues to look at all opportunities to improve market share and protect margin while exercising strong cost controls.
[ JD Sports defends £6m payment to ex-chairman Peter CowgillOpens in new window ]
The directors added that the increase in turnover could be attributed to the company’s retail stores re-opening after Government-enforced lockdowns during the prior year due to Covid-19.
“A reduction in gross margin and an increase in operating costs has led to a reduction in operating profit before interest and tax. However, the directors are satisfied with the performance of the business and its future prospects,” they said.
They further state that with the support of parent company JD Sports Fashion plc, the company continued to put in place mitigating activities to combat the impacts of Brexit, including the opening of a new 65,000sq ft warehouse in the northwest of Dublin.
That warehouse is now fully operating, both supplying products to store and fulfilling online orders in the Republic.
[ Sports Direct to open for business at Athlone TowncentreOpens in new window ]
Operating profits of €20.3 million and interest costs of €1.53 million reduced profits of €18.76 million.
The retailer received no Government Covid-19 grants last year after receiving €1.3 million the prior year. No dividend was paid last year after a dividend of €18 million was paid out in the prior year.
Numbers last year employed increased from 775 to 952 as staff costs rose from €9.8 million to €12.99 million. After tax profits were €16.3 million.
