JD Sports-owned Go Outdoors returns to profit but cuts more jobs
Go Outdoors, the retailer owned by FTSE 100 giant JD Sports, returned to profit as it cut more jobs in the wake of Chancellor Rachel Reeves’ tax hikes, it has been revealed.
The business said it has reduced its headcount as it “faced significant cost headwinds” including the increase in the National Living Wage, a person familiar with the situation told Morning Wire.
The reduction in employee numbers came despite Go Outdoors opening 27 stores in the year to 1 February, 2025.
Go Outdoors had previously reduced its headcount from 2,534 to 2,382 in the prior financial year.
When approached by Morning Wire, Go Outdoors would not confirm the exact number of jobs that have been cut during its latest financial year.
However, the figure is set to be made public this week when Go Outdoors’ accounts are filed with Companies House.
According to figures seen by Morning Wire, Go Outdoors returned to the black in the year to 1 February, 2025, posting a pre-tax profit of £9.7m.
The company had previously reported a pre-tax loss of £1.5m in the 12 months to 3 February, 2024.
But the retailer’s revenue fell from £344.8m to £341.2m during the year. Go Outdoors pointed to the one fewer trading week during its latest period.
The company added that its return to the black was aided by an increase of its gross margin from 41 per cent to 45.7 per cent.
That rise was driven by a better management of inventory while sea freight costs improved.
Go Outdoors also said its operating margin grew by three per cent thanks to supply chain savings.
As a result of its new store openings, the retailer now operates from 126 locations, up from 99.
During the year, Go Outdoors said it spend £3m on upgrading its existing store estate.
As well as the main Go Outdoors brand, the company also operates Go Outdoors Express, Taylor’s and Fishing Republic.
JD Sports has owned Go Outdoors after buying it for £56.5m in 2020 after pushing the brand into administration.
Go Outdoors ‘well positioned for success’
A spokesperson for Go Outdoors said: “We are pleased to report a return to profitability in our last financial year after making good progress against our strategy.
“This strong performance was driven by higher sales on a 52-week basis and a marked improvement in gross margin, reflecting enhanced inventory management and lower sea freight costs, alongside improvements in our supply chain operations.
“We opened new stores and increased investment in our wider estate last year, including the opening of a new flagship in York, which sells more than 380 brands, including Rab, adidas Terrex, Oakley and OEX, covering every outdoor activity.
“Our York store has become a destination for outdoor customers in the local area and further afield.
“We are well positioned for further success, and continue to be encouraged by the response of customers to our fantastic product proposition.
“We remain committed to inspiring more people to enjoy the benefits of an active outdoor lifestyle, recognising the physical and mental health benefits of spending time outdoors.”
Minimum wage fine
The results come after it was revealed earlier this month that Go Outdoors was among almost 500 retailers to be fined by the government for failing to pay some of their staff the minimum wage.
A list of 491 companies was release by the Department for Business and Trade who underpaid workers over several years.
The businesses, which included the likes of Holland & Barrett, Pizza Express and the owner of British Gas, are to pay a fine totalling £10.2m.
Go Outdoors placed seventh on the list, owing £240,106 to 2,058 workers.
The National Living Wage was £11.44 in the year to the end of March and has risen to £12.21 since April.
A spokesperson for Go Outdoors said: “The payments made by Go Outdoors in 2022 relate to practices pre-dating the acquisition and integration of the business by JD Sports following an HMRC review. All payments that were due to colleagues and HMRC were settled in 2022.”