News

Fishing and outdoor chain Go Outdoors reported a pre-tax loss of £1.4m for the year to February 2024, while sports fashion owner JD Sports has seen £842m wiped off its value after it reported lower-than-expected profits.

Go Outdoors, which also runs the Go Outdoors Express, Taylor’s and Fishing Republic brands, said its turnover had been slightly up in the year to February 2024, due in part to a 53-weeek year and additional store retail space but blamed a “disproportionate” rise in costs for the loss.

Recently filed accounts with Companies House show the runover grew from £338.2m to £344.7m over the period. Over the year it also lost 152 employees.

A statement from the board said: “During the period, the company has seen a contraction of the online market which, although above pre-pandemic levels, has partially offset the strong sales performance within bricks and mortar stores.”

Go Outdoors added: “Directors are pleased with the sales performance of the company during the year but recognise more work needs to be done on lowering its cost base and improving its profitability.”

 “Although sales and margins improved, costs have also increased disproportionately compared to the previous period due to increased staffing and distribution costs, reflecting National Living Wage changes and increased activity.”

Meanwhile, JD Sports – which bought Go Outdoors for £56.5m in 2020 – saw a whopping £842m (or 16 per cent) wiped off its value in just one morning after its third quarter update, suggesting profit before tax is set to be between £955m and £1,035m.

The firm blamed consumer caution in October, increased discounting and mild weather for a drop in sales in its third quarter update to the London Stock Exchange.

JD Sports’ CEO Régis Schultz said: “After a good start to the period, helped by strong back-to-school sales, we saw increased trading volatility in October, particularly in North America and the UK, reflecting elevated promotional activity and mild weather.

“The trading environment remains volatile though and following October trading, we now anticipate full year profit to be at the lower end of our guidance range.”