Go Outdoors sales rise but profits are hit by higher costs

By

Sandra Halliday

Published
Nov 21, 2023

Go Outdoors — the JD Sports-owned outdoor lifestyle brand — has filed its results for the year to the end of January, and it was clearly a tough 12 months as profits dropped on the back of higher costs.

The company — whose full name is Go Outdoors Retail Limited — reported pre-tax profits of £13.1 million, down sharply from £21.5 million in the previous year. It said property, utility and freight costs had “increased disproportionately” during the period.

It also saw higher staff costs as the national living wage rose and it opened new stores, which meant it took on more staff. The company had operated 68 stores in the UK in the previous period, but during the year this was to 86. 

It's pre- tax profit fell despite turnover increasing from £316.3 million to £338.2 million and gross profit rising to £140.4 million from £135.7 million. Operating profit was £10.1 million, down from £21.5 million in the previous year. And net profit for the period dropped to £11.1 million from £17.2 million.

The company said that the increase in turnover was mainly due to the fact that its stores were able to operate normally with no pandemic restrictions for the full period. It also introduced a new retail banner during the 12 months, called Go Outdoors Express, although this only launched at the end of November 2022 with 12 smaller high street stores. Nonetheless, this is an important development as it exposes the brand to a new set of consumers on high streets, rather than the out-of-town retail park consumers many of its regular stores reach.

The company also invested in a new flagship concept across six locations, one of which is completely new with the other five being relocations or refits. It said the concept has traded “exceptionally well”.

But it added that the financial year saw a contraction of its online market, and although e-sales were above pre-pandemic levels, that contraction partially offset the strong sales performance in its physical locations.