JD Sports Fashion revealed a 14.5% increase in group pre-tax profits before exceptional items to £14.2 million ($22.2 mm) in the 26 weeks to August 1. Total group sales for the U.K. sports fashion retailer jumped 8.4% to £324 million ($443.4 mm), while like-for-likes edged up 0.7%.
The like-for-like growth was made up of a 0.3% rise at the Sports business – comprising JD, Size? and Chausport – and a 3.1% increase at its Fashion fascia comprising Bank and Scotts.
Group like-for-likes in the six weeks to Sept. 12 grew 0.8%. This was made up of a 1.3% rise at the Sports fascia and a 2.4% decline in its Fashion business.
At the retailer’s Sports Retail business, operating profit before exceptional items in the half increased from £16.2 million ($24.9 mm) to £17.2 million ($23.5 mm). At its Fashion Retail business operating losses before exceptional items reduced from £3.3 million ($5.1 mm) to £2.7 million ($3.7 mm) in the period. Group gross margin was maintained at 48.2%.
Peter Cowgill, Executive Chairman, said:
“The positive performance of the Group has enabled us to continue with our substantial store refurbishment programme and to open five new Sports stores and five new Fashion stores. It also means that we are able to continue to look positively at the many acquisition opportunities available in our retail markets and related areas as they arise.
“The Sports Fascias remain the core of Group profitability. Their strength lies in our unique blend of sports and fashion brands, the strong brand relationships which allow us to develop exclusive products, and our exclusive own brands and superior visual merchandising. We believe these strengths will benefit us as we look to further develop the potential in the Chausport business in 2010.
“Trading since the period end has continued to be satisfactory with like for like sales for the Group in the six week period to 12 September up by 0.8%.
Sports Retail is up by 1.3% (flat excluding the influence of Eid over the latter half of that period) although Fashion Retail is down by 2.4%. The like for like sales performance in the balance of the year will be measured against weaker comparatives in October and November last year but with challenging conditions for the consumer continuing, the result for the full year remains very dependent on the sales and margin performance in December and January.
“Nevertheless, the Board believes that the Group is well positioned to deliver on market expectations.”
