In its first half earnings report, filed Tuesday, JD Sports said Finish Line added 180 pounds ($235 million) in sales and 4.8 million pounds ($6.3 million) in operating profit to its balance sheet during the seven-week period post acquisition. (JD Sports announced its $558 million acquisition of Finish Line in March and closed the transaction in June. The earnings reporting period is the 26 weeks ended Aug. 4, 2018.)
In total, JD expects Finish Line — which, pre-acquisition, had struggled to meet its financial targets amid competition from Foot Locker — to contribute 337 million to 345 million pounds to its balance sheet during the current fiscal year.
JD — which plans to use the latest addition to its portfolio to grow its presence in North America — said it is already working with Finish line on a project “to test JD’s highly differentiated multichannel retail proposition in the United States.” Among its plans is a “small trial” in Finish Line stores ahead of the holidays.
Overall, JD said its total profits before taxes increased 19 percent to 121.9 million pounds and its operating profit advanced 20 percent to 123.9 million pounds in the first half. Revenues rose 35 percent to 1.85 billion pounds from 1.37 billion in the prior comparable period.
“This is another record result for our group demonstrating that our multi-brand multichannel premium offer has resilient profitability in its core U.K. and Ireland market with capacity for continued growth across an increasing number of international markets,” said executive chairman Peter Cowgill in a statement. “Against a backdrop of widely reported retail challenges in the U.K., it is extremely reassuring that the profitability in the U.K. and Ireland Sports Fascias has been further enhanced. This reflects the value of the investments that we have made over a number of years in developing a dynamic multichannel proposition which marries the best of physical and digital retail enabling customers to interact with us where and when they want and through the channel of their choice.”