What: UK-based JD Sport is unexpectedly healthy financially speaking in spite of financial adjustments.

Why it is important:  As it is currently eyeing Courir in France and other businesses in Spain, this might become a new regional player European department stores might have to count with.

JD Sports reported a nearly one-third drop in full-year profit due to a GBP 550 million charge related to the sale of smaller sports brands and the cleanup of previous acquisitions. Pre-tax profits for the 12 months to January 28 fell to GBP 440 million, down from GBP 654 million the previous year. However, when adjusted for these items, the company's profit before tax was GBP 991 million, up from GBP 947 million the previous year.

CEO Régis Schultz attributed the company's success to the shift from formal wear to leisurewear, particularly sneakers. Schultz, who took over in September, plans to open 1,750 stores over the next five years with an investment of nearly GBP 3 billion. Despite the profit drop, JD Sports expects to surpass the GBP 1 billion profit mark for the first time this year.

JD Sport profit falls after GBP 550mn charge