JD Sports scraps final dividend, chairman opts for 75% salary cut

FILE PHOTO: People pass a JD Sports store in London, Britain April 11, 2017. Shares in Britain’s JD Sports Fashion Plc climbed to a record high after strong demand for leisure clothing helped to drive a 55 percent rise in headline annual pretax profit, its biggest increase in eight years REUTERS/Neil Hall

(Reuters) – JD Sports (JD.L) on Friday suspended the payment of final dividend in order to maintain its cash reserves and said Chairman Peter Cowgill will take a 75% voluntary reduction in salary amid the coronavirus pandemic.

Britain’s biggest sportswear retailer, which has shut all of its stores in the UK, United States and Europe, has further delayed the publication of its full-year results to provide clarity on the coronavirus’ impact on the group’s performance.

JD Sports said it would announce preliminary results for the 12 months to Feb. 1 on July 7, after delaying it to May in the previous month.

The retailer has also differed the payment of bonuses and other incentive payments for the year ended Feb. 1, adding that its board and senior management team have agreed for voluntary salary reductions of at least 25%.

The company said it would consider paying bonuses and incentives at some point after its stores have re-opened and resume dividend payments when conditions allow.

Reporting by Shanima A in Bengaluru; Editing by Amy Caren Daniel

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