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ANNUAL REPORT AND ACCOUNTS

ANNUAL REPORT AND ACCOUNTSCONTENTSOVERVIEW2 HIGHLIGHTS6 OUR BRANDS30 WHERE WE ARE36 EXECUTIVE CHAIRMAN S STATEMENTSTRATEGIC REPORT44 BUSINESS MODEL46 OUR STRATEGY51 PRINCIPAL RISKS79 BUSINESS REVIEW83 FINANCIAL REVIEW88 PROPERTY AND STORES REVIEW96 CORPORATE AND SOCIAL RESPONSIBILITY140 THE JD FOUNDATION154 SECTION 172 STATEMENTGOVERNANCE160 THE BOARD162 DIRECTORS REPORT168 CORPORATE GOVERNANCE REPORT176 AUDIT COMMITTEE REPORT179 DIRECTORS REMUNERATION REPORTFINANCIAL STATEMENTS210 STATEMENT OF DIRECTORS RESPONSIBILITIES212 INDEPENDENT AUDITOR S REPORT226 CONSOLIDATED INCOME STATEMENT226 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME227 CONSOLIDATED STATEMENT OF FINANCIAL POSITION228 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY229 CONSOLIDATED STATEMENT OF CASH FLOWS230 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS313 COMPANY BALANCE SHEET314 COMPANY STATEMENT OF CHANGES IN EQUITY314 NOTES TO THE COMPANY FINANCIAL STATEMENTSGROUP INFORMATION326 FINANCIAL CALENDAR327 SHAREHOLDER INFORMATION328 FIVE YEAR RECORD329 ALTERNATIVE PERFORMANCE MEASURESNYcNEW STORE IN2 HIGHLIGHTS* Throughout the ANNUAL REPORT * indicates the first instance of a term defi

Plc was listed on the London Stock Exchange. 57.5% of JD Sports Fashion Plc was bought by the Pentland Group. 2012 The JD Group expanded into the Outdoor market with Blacks and Millets joining the Group. 2011 The JD Group acquired Sprinter, a leading Spanish sports retailer, specialising in footwear, apparel and equipment; the Group’s first entry

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Transcription of ANNUAL REPORT AND ACCOUNTS

1 ANNUAL REPORT AND ACCOUNTSCONTENTSOVERVIEW2 HIGHLIGHTS6 OUR BRANDS30 WHERE WE ARE36 EXECUTIVE CHAIRMAN S STATEMENTSTRATEGIC REPORT44 BUSINESS MODEL46 OUR STRATEGY51 PRINCIPAL RISKS79 BUSINESS REVIEW83 FINANCIAL REVIEW88 PROPERTY AND STORES REVIEW96 CORPORATE AND SOCIAL RESPONSIBILITY140 THE JD FOUNDATION154 SECTION 172 STATEMENTGOVERNANCE160 THE BOARD162 DIRECTORS REPORT168 CORPORATE GOVERNANCE REPORT176 AUDIT COMMITTEE REPORT179 DIRECTORS REMUNERATION REPORTFINANCIAL STATEMENTS210 STATEMENT OF DIRECTORS RESPONSIBILITIES212 INDEPENDENT AUDITOR S REPORT226 CONSOLIDATED INCOME STATEMENT226 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME227 CONSOLIDATED STATEMENT OF FINANCIAL POSITION228 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY229 CONSOLIDATED STATEMENT OF CASH FLOWS230 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS313 COMPANY BALANCE SHEET314 COMPANY STATEMENT OF CHANGES IN EQUITY314 NOTES TO THE COMPANY FINANCIAL STATEMENTSGROUP INFORMATION326 FINANCIAL CALENDAR327 SHAREHOLDER INFORMATION328 FIVE YEAR RECORD329 ALTERNATIVE PERFORMANCE MEASURESNYcNEW STORE IN2 HIGHLIGHTS* Throughout the ANNUAL REPORT * indicates the first instance of a term defined and is explained in the Alternative Performance Measures on page 329.

2 Exceptional items are disclosed in Note 4 of the financial statements. ** Final dividend withheld as cash was preserved due to COVID-19 outbreak. 6, 6, 4, m 3, 2, DIVIDEND PAYABLE PER ORDINARY SHARE ** BEFORE TAX AND EXCEPTIONAL ITEMS* BEFORE TAX EARNINGS PER ORDINARY SHARE BASIC EARNINGS PER ORDINARY SHARE* ASSETS 1, 1, 1, CASH* group REVENUE BY GEOGRAPHICAL MARKETGROUP REVENUE BY CHANNELREST OF THE WORLD4%US29%UK41%WHOLESALE3%MULTI CHANNEL40%RETAIL57%EUROPE26%345 TIMELINE41981JD Sports began with its first store in Bury, Greater Sports opened its first store on Oxford Street, Sports Fashion Plc was listed on the London Stock of JD Sports Fashion Plc was bought by the Pentland JD group expanded into the Outdoor market with Blacks and Millets joining the JD group acquired Sprinter, a leading Spanish sports retailer, specialising in footwear, apparel and equipment.

3 The group s first entry into Sports Fashion Plc acquired Chausport, a French sports retailer; the group s first international presence and entry into Sports opened its first JD store in Lille, France; our first store in JD group was promoted to the FTSE100 list of largest businesses in the JD group launched its first JD Sports store in Malaysia; the group s first entry into Asia Pacific. JD now has stores in Australia, Singapore and JD group also opened its first gym as part of JD Gyms; an affordable yet stylish gym JD group acquired Hot-T, a South Korean retailer of sports branded JD group acquired Finish Line in the United States, a sports fashion retailer with a store presence across 44 states. JD Sports opened its first 5 JD stores in the USA: Chicago, Houston, Columbus, Washington and JD group acquired Shoe Palace, a retailer of branded sports footwear and apparel based on the West Coast of the On acquisition, Shoe Palace had 167 stores, most of which are in California, with a strong connection with Hispanic and Latino opened its first store in Times Square, New York, USA.

4 JD s first flagship in the JD group now has over 2,600 stores in 20 territories, including over 850 JD stores, as we continue to JD group acquired Go Outdoors, the UK s destination for everything IN 1981 WITH A SINGLE STORE IN THE NORTH WEST OF ENGLAND, JD SPORTS FASHION PLC IS A LEADING INTERNATIONAL MULTICHANNEL RETAILER OF SPORTS, FASHION AND OUTDOOR is a sports fashion, multichannel retailer of branded sports and casual wear, combining globally recognised brands such as Nike, adidas, Puma and The North Face, with strong private labels such as Pink Soda and Supply & Demand to provide an elevated consumer experience. JD is an industry leading retail business which combines the best of physical and digital retail to give a compelling consumer proposition which enables its customers to shop seamlessly across all channels.

5 JD now has over 850 stores in 19 territories worldwide with the first store in New Zealand expected to open later in the STORES19 TERRITORIES ACROSS THE GLOBE8 WHO WE ARE891011 Footpatrol is famous for supplying the sneaker fraternity with the most desirable footwear, apparel and accessories specialising in new and classic sneakers, limited editions, Japanese exclusives and rare deadstock. The original Footpatrol store is based in the heart of Soho on Berwick Street which is complemented with a second store on the fashionable Rue de Temple in Paris. Footpatrol also has dedicated local language sites for seven other countries including the Netherlands and STORESE stablished in 2000, Size? specialises in supplying the finest products from the best brands in footwear, apparel and accessories. Initially set up to trial edgier product collections before introducing them to the mass market through the JD fascia, the Size?

6 Offer has since grown to include its own roster of highly sought-after worldwide exclusive product releases. Outside of the UK and Republic of Ireland, Size? has stores in Belgium, Denmark, France, Germany, Italy, the Netherlands and Spain. Size? is planning to open its first store in North America later in the year with a store in Toronto, STORES1011 Sprinter is one of the leading sports retailers in Spain selling footwear, apparel, accessories and equipment for a wide range of sports as well as lifestyle casual wear and childrenswear. Their offer includes both international sports brands and successful private labels. 163 STORESC hausport operates throughout France retailing leading international footwear brands such as adidas, Nike and Timberland to a more family focused customer through a network of 66 stores and a trading website.

7 66 STORES1213 Sports Unlimited Retail operates in the Netherlands under the Perry Sport and Aktiesport fascias. Aktiesport is the largest sports retail business in the Netherlands with a sharp focus on selling football and lifestyle goods from various brands such as Nike, adidas, Under Armour and FILA. Perry Sport is a sports and adventure retailer with a focus on functional sports, sports lifestyle and adventure STORESS port Zone is a well-established and leading multibranded sports retailer in Portugal offering a wide apparel, footwear, accessories and equipment range across multiple sports. 107 STORES1415 Shoe Palace is a retailer of branded sports footwear and apparel located on the West Coast of the United States. Shoe Palace currently has 167 stores, the vast majority of which trade under the Shoe Palace banner. More than half of the stores are located in California, although there is also an established retail presence in Texas, Nevada, Arizona, Florida, Colorado, New Mexico and Hawaii, with the store network supported by a developing e-commerce platform.

8 Shoe Palace prides itself on its consumer connection with Hispanic and Latino communities and its strong social media STORESF inish Line is one of the largest retailers of premium, multibranded athletic footwear, apparel and accessories in the United States. Finish Line trades from over 460 branded retail stores in more than 40 US states and Puerto Rico and is also the exclusive partner of athletic shoes for Macy STORES1617JD Gyms offers seriously stylish, seriously affordable, award winning facilities across 38 prime locations and plays host to a bespoke mix of industry leading fitness equipment and an exciting range of fitness classes. The 38 sites include seven sites which previously operated as Xercise4 Less. A further 32 gyms were still branded as Xercise4 Less at the year-end although 12 of these have subsequently been converted to LOCATIONSL ivestock is renowned in Canada for being the premier destination in the country for limited release and classic sneakers.

9 Accompanied by a premium apparel offering, Livestock has four stores and a website trading as This business will provide the platform for the development of JD group fascias in STORES18192 STORES21 Tessuti is a leading retailer of high fashion, aspirational brands catering to both men and women. Tessuti offers its consumers a unique shopping experience through its website and concept stores and is a consumer destination for luxury and desirable high fashion items, ranging from footwear and accessories to apparel. Tessuti stocks brands such as Hugo Boss, Polo Ralph Lauren, Parajumpers and Stone STORES20 Scotts retails fashion and sport led brands with authority to older, more affluent male consumers largely beyond school age, stocking brands such as Lacoste, Fred Perry, Pretty Green and Paul & STORESM ainline Menswear is an online niche retailer of premium branded men s apparel and footwear, stocking brands such as Armani, Hugo Boss and Ralph is a long established retailer of specialist outdoor apparel, footwear and equipment.

10 Blacks primarily stock more technical products from premium brands such as Berghaus and The North Face helping outdoor participants, from weekend family users to more avid explorers, reach their goals, no matter how STORESM illets supply a more casual outdoor customer who seeks value for money, providing for a wide range of recreational activities with an emphasis on exclusive brands, such as Peter Storm and Outdoors ( GO ) focuses on innovation and authenticity whilst never losing sight of the consumer expectation for value. GO helps people to step into the outdoors whether it s to go walking, camping, cycling or fishing. From unique product areas to strong exclusive brands such as Hi-Gear, North Ridge and Freedom Trail, GO is constantly looking for fresh ideas to keep things fun. A number of GO stores also now benefit from specialist sections for fishing and equestrian leveraging off the specialist knowledge and reputation at Fishing Republic and Naylors STORES93 STORESTiso is Scotland s leading adventure sports retailer specialising in outdoor, mountain, skiing and cycling.


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