JD Sports Fashion, the U.K.-based retailer, reported profits jumped 70.3% in the first half ended July 31, to £11.7 million ($18 mm.) Profits were boosted by lower taxes as well as a loss on a joint venture taken in the year-ago period. Earnings before taxes and the year-ago charge were up 36.5% to £19.4 million ($30 mm.) Overall revenues climbed 18.5% to £384 million ($599 mm), with gross margins up 0.2% to 48.2% of sales.
Comparable-store sales were up 2.8% for the period as a gain of 3.9% in the Sports Retail segment (JD Sports, Chausport) offset a decline of 3.8% at its Fashion Retail segment (Bank and Scotts.)
Sport Retail's operating profit before exceptional items in the half increased 23.4% to £21.6 million ($34 mm) while Fashion Retail reduced its operating losses before exceptional items from £2.7 million ($4 mm) to £2.0 million ($3 mm).
In the four weeks ended Aug. 28, comps were up 2.7% with gains of 2.1% at Sports Fascias and 7.1% Fashion Fascias.
Peter Cowgill, JD Sports’ executive chairman, said in a statement, “We are up against tough comparatives over the balance of the year and the economic outlook remains uncertain but the good foundation of these first half results and our strong cash position mean both, that we have proposed another significant dividend increase, and we are well positioned for further internal and external investment in our growth.”
