Retail giant JD Sports has reported profits jumped during the first half of the year due to post-lockdown demand - but said it will withhold its interim dividend.
The Greater Manchester-based firm hinted instead at a "larger" full-year dividend - warning that footfall remained weak in many countries and challenges in the supply chain had prevented it from meeting the demand.
For the six months ending July 31, Britain's largest sports retailer said revenue had risen from last year's £2.55bn to £3.89bn, while profit before tax soared from £41.5m to £364.6m.
It comes after a period of expansion for JD Sports, which has bought up firms such as Finish Line, Shoe Palace, DTLR and Footasylum - although earlier this month, concerns were raised over the latter deal.
In interim results released on Tuesday, Peter Cowgill, executive chairman, said: "The group continues to demonstrate outstanding resilience in the face of numerous challenges arising from the continued prevalence of the Covid-19 pandemic in many countries, widespread strain on international logistics and other supply chain challenges, materially lower levels of footfall into stores in many countries after reopening and the ongoing administrative and cost consequences resulting from the loss of tariff free, frictionless trade with the European Union.
"Given these challenges, the record result that the group has delivered in the first half with a profit before tax and exceptional items is extremely encouraging."
Mr Cowgill said the core business in the UK and Ireland performed "strongly" in the first half - delivering a profit before tax and exceptional items of £170.8m compared to 2020's £52m.
The group's US banners delivered a combined profit before tax and exceptional items of £245m compared to last year's £35.7m.
Mr Cowgill added: "Ultimately, the group is at the pinnacle of the global sports fashion industry with consumers instinctively knowing that our retail propositions focus on their fashion desires and aspirations in both footwear and apparel, with an agile multichannel ecosystem delivering the highest standards of retail execution and consumer experience.
"This is respected by the international brands who regularly call JD out as a premier global strategic partner.
"We remain absolutely confident that our inherent strengths in retail dynamics and operations provide us with a robust platform to make further progress."
The firm said there will not be an interim dividend - but that a "potentially larger full-year dividend" will be paid next year - "subject to the performance of the group taking into account the consequences of any potential further restrictions on trading".
Mr Cowgill added: "At this time, we are generally encouraged by our performance in the first few weeks of the second half although retail footfall remains comparatively weak in many countries.
"Assuming a prudent but realistic set of assumptions for the peak trading period ahead which take into account the absence of stimulus in the United States for the second half of the year, in addition to current industry-wide supply chain challenges, we presently anticipate delivering a headline profit before tax for the full year of at least £750m.
"The JD brand is increasingly recognised on a global basis and this result bears testimony to the underlying strength of our business. I would like to express my sincere thanks and gratitude to everyone in all of our group businesses for their remarkable contribution in delivering these excellent results during such a challenging period."
