JD Sports surges as growth plan unveiled by new CEO Schultz

Shares in sports fashion retailer JD Sports Fashion surged on Thursday as the company revealed it is aiming to grow revenues and margins by double digits over the next five years alongside a rapid store expansion under a strategy outlined by new chief executive Regis Schultz.

The plan also includes capital expenditure of £500m - £600m a year with 50% - 60% of spend focused on store expansion in underpenetrated markets with 250 - 350 new stores a year. Shares in the chain gained 7.5% in London on the news.

JD forecast cash generation from operating activities of £1bn per annum as it seeks to double its market share in key regions.

Schultz took over as CEO last September, after the ousting of long-standing executive chairman Peter Cowgill in May of 2022.

"Today marks a new, distinct chapter in the growth story of JD as we set our plans to become the leading global sports-fashion powerhouse," Schultz said in a statement.

"Building on our strong existing position and attractive long-term market dynamics, we see significant growth opportunities ahead by expanding JD internationally, notably in North America and Europe. We will also be enhancing our omnichannel retail offering, investing in technology and analytics, and leveraging our long-term strategic brand partnerships, to better serve more customers."

Reporting by Frank Prenesti for Sharecast.com