Go Outdoors, the retailer owned by FTSE 100 giant JD Sports, has returned to profit whilst cutting additional jobs following Chancellor Rachel Reeves' tax increases, it has emerged.
The business said it had trimmed its workforce as it "faced significant cost headwinds" including the rise in the National Living Wage, according to a source familiar with the matter who spoke to .
The staff reduction occurred despite Go Outdoors launching 27 new stores during the year ending 1 February, 2025.
Go Outdoors had already reduced its workforce from 2,534 to 2,382 in the previous financial year.
When contacted by ., Go Outdoors declined to specify the precise number of staff reductions during its most recent financial period. Nevertheless, the figure will be disclosed this week when Go Outdoors submits its accounts to Companies House.
Based on figures reviewed by City AM, Go Outdoors moved back into profitability for the year ending 1 February, 2025, recording a pre-tax profit of £9.7m.
The firm had previously registered a pre-tax loss of £1.5m in the 12 months to 3 February, 2024.
However, the retailer's turnover declined from £344.8m to £341.2m over the period.
Go Outdoors attributed this to having one fewer trading week in its latest reporting cycle.
The company noted that its return to profitability was supported by an improvement in gross margin from 41 per cent to 45.7 per cent.
This increase stemmed from enhanced stock management whilst sea freight expenses decreased. Go Outdoors has reported a three per cent increase in its operating margin, attributed to supply chain savings.
The retailer has expanded its operations from 99 to 126 locations due to new store openings.
Over the past year, Go Outdoors invested £3m in upgrading its existing stores.
In addition to the main Go Outdoors brand, the company also runs Go Outdoors Express, Taylor's and Fishing Republic.
JD Sports became the owner of Go Outdoors after purchasing it for £56.5m in 2020, following the brand's administration.
A spokesperson for Go Outdoors stated: "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."
They added: "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."
