Skip to content

JD Sports' CEO's Bonus Reduced: FTSE 100 Heavyweight Falls Behind Next in £1 Billion Profit Competition

JD Sports' CEO forfeits substantial earnings as FTSE 100 company trails behind Next in reporting a £1bn profit milestone.

JD Sports' head honcho forgoes significant financial reward as FTSE 100 retail competitor, Next,...
JD Sports' head honcho forgoes significant financial reward as FTSE 100 retail competitor, Next, beats them to posting a £1bn profit.

JD Sports' CEO's Bonus Reduced: FTSE 100 Heavyweight Falls Behind Next in £1 Billion Profit Competition

JD Sports Lags Behind in the Race to Reach £1 Billion Profit, Losing Out to Rival Next

Not quite making the mark, JD Sports reported a profit of £923 million before tax and adjustments for the year ending February 2025. This figure, while in line with the January guidance, was lower than some stock market analysts had anticipated.

Régis Schultz, the company's CEO, saw his pay packet increase from £1.5 million to £2 million for the fiscal year. His annual bonus, however, saw a lesser increase—jumping from £395,000 to £824,000. The smaller bonus tallied up due to JD Sports' dip in profit before tax and adjustments in the same period.

City AM had previously reported that JD Sports' profit before tax and adjustments decreased by 4% annually, reaching £923 million, while its statutory pre-tax profit was sliced by 11.3% to £715 million.

Initially, JD Sports aimed for a profit of £1 billion, but the retailer faced two consecutive reductions in its annual guidance within a span of less than two months, thereby missing this significant milestone. Instead, the feat was secured by FTSE 100 competitor, Next, whose CEO was handsomely rewarded with a pay raise.

In its annual review, JD Sports revealed that only 40% of the CEO's maximum annual bonus was related to revenue growth. The non-payment of any bonus based on the profit before tax and adjustments metric was another factor that kept Schultz's annual bonus around 38% of its maximum potential.

Despite missing the £1 billion target, JD Sports registered a 10.2% rise in revenue for the fiscal year, reaching £11.4 billion. Notably, Schultz received a complete payout for the group's net cashflow before dividends, financing, acquisitions, and disposals were considered.

The company plans to pay a full-year dividend of £52 million, an 11% increase from the previous year, and has initiated a £100 million share buyback program.

Pushing investments into infrastructure and security played a key role in JD Sports' finances, slightly impacting profitability but aligning with their strategic plans. The company also encountered challenging market conditions and pressure on consumer confidence, particularly in North America. Upcoming tariff changes in the U.S. are expected to drive prices up, potentially affecting consumer spending further.

While JD Sports fell short of its £1 billion goal, its financial performance mirrored strategic choices and a turbulent market environment rather than a direct comparison to Next.

The sports industry's finance sector witnessed JD Sports falling behind its rivals, failing to reach the £1 billion profit target, a feat achieved instead by FTSE 100 competitor, Next. Despite this miss, the sports business registered a 10.2% rise in revenue, indicative of ongoing investments in infrastructure and security.

Read also:

    Latest