JD Sports profits more than double in first half
In the 26 weeks to 3 August, pre-tax profits soared to £6.1 million from £2.9 million a year earlier while revenues edged up 2% to £567.4 million.
In a trading statement issued today, the group said there had been a record performance in its core sports fascias with strong sales and margin performance. Like-for-like sales rose by 7.5% in the UK and Ireland. Operating profit before one-off items increased by £10.3 million to £29.2 million.
During the period, the group expanded the sports fascias in international markets with further new stores in France and Spain together with the acquisition of first stores in Holland and Germany.
Losses at the group’s Blacks and Millets outdoor stores narrowed to £8.9 million, down from £10 million in the same period last year.
The group said trading at its fashion fascias Bank and Scotts, had been “more difficult” as like-for-like sales, excluding premium, fell by 2.2%.
Peter Cowgill, JD Sports executive chairman, said: "The strong overall result in the first half has been driven by a record performance in our core Sports fascias in the UK. This business continues to provide the group with a very solid platform for group profitability and future cash generation. We are also pleased with the continued evolution of the JD fascia in mainland Europe.
"Elsewhere, the performance of both the fashion and outdoor fascias has been impacted by significant continued reorganisation activity in the period. Whilst these reorganisations have had a short term negative impact on the overall Group results, we strongly believe that the decisive actions which we have taken were necessary for these businesses to deliver returns in the longer term.
"The robust trading in the sports fascias has continued since the period end although trading in the fashion fascias continues to be more difficult. Overall, the like for like sales for the core UK and Ireland sport and fashion fascias in the five week period to 7 September 2013 are up by 2.8%.
"Given the continued robust performance in our core Sports fascias, the board believes that the Group is well positioned to deliver results that are within the range of current expectations."
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