JD Sports to open new Irish warehouse to avoid Brexit-related tariffs

UK fashion giant no longer enjoys tariff-free trading

The JD Sports store on Cork's St Patrick's Street. Picture: Larry Cummins

Sportswear giant JD Sports is currently fitting out a 65,000 sq ft warehouse near Dublin which will become operational in the second half of this year to allow frictionless trading in the wake of Brexit.

Publishing its final results for 2020 today, the UK firm said it no longer enjoys 'tariff free' frictionless trading in Europe with products incurring duties and disruption from customs checks on the transfer of goods from the UK into EU countries. 

The company has opened a warehouse in Belgium to reduce exposure to the "adverse" consequences of Brexit which is fulfilling a large proportion of our core ranges and fastest moving lines required for stores in Mainland Europe.

"This site is functioning very well but it does not provide a solution for either online orders or product destined for the Republic of Ireland. In this regard, we are currently fitting out a 65,000 sq ft warehouse near Dublin which will become operational in the second half of this year."

JD Sports reported falling annual profits for last year but said earnings are set to bounce back strongly over the year ahead as coronavirus restrictions ease.

The group reported pre-tax profits of €374m for the year to January 30, down from €402m the previous year, even though revenues edged higher to €7.13bn.

But JD Sports said it expects headline group pre-tax profits for the year to next January to surge to between €549m and €577m.

Peter Cowgill, executive chairman of JD Sports, said: "The global Covid-19 pandemic and, more recently, the UK's formal exit from the European Union have presented a series of unprecedented challenges which have severely tested all aspects of our business including our multichannel capabilities, the robustness of our operational infrastructure and the resilience of our colleagues."

He added: "Whilst we must recognise the substantial level of temporary store closures to date and ongoing, we remain confident that we are well placed to benefit from the opportunities that prevail and, at this early stage, our current best estimate is that the group headline profit before tax for the full year to 29 January 2022 will be in the range of €549m and €577m."