It has been just a few months since Indianapolis-based Finish Line was acquired by U.K. firm JD Sports Fashion Plc — but the retailer is already making a contribution.
In its first-half earnings report, filed Tuesday, JD Sports said Finish Line added 180 million 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.)
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 in sales 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 multibrand 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,” executive chairman Peter Cowgill said 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.”