Profits fall at JD Sports as Blacks losses continue
Sportswear retailer JD Sports Fashion saw its full year pre-tax profit fall by 18.3% in the year to February as the group's Blacks chain of stores impacted performance.
In the 53 weeks to 2 February, pre-tax profit dropped to £55.1 million although revenues increased by 18.8% to £1.26 billion.
Like-for-like sales in the group’s core sports fascias climbed 2.5% while revenues grew by 10.2% to reach £854 million. Operating profits rose 4.7% to £77.8 million.
JD said its sports fascias had continued to perform well in the current financial year with like-for-like sales growth in the UK and Ireland stores of 1.9% in the nine weeks to 6 April 2013.
Outdoor brands Blacks and Millets, which the group acquired in January 2012, made an operating loss of £14.9 million although their performance has improved more recently due to new management team, better stock control and ongoing cost management.
JD’s fashion business, which includes the Bank chain of stores, reported a 4.1% decline in the like-for-like sales during the year.
Peter Cowgill, executive chairman, said: "We are pleased overall with the start that we have made to the new year. A very considerable amount of reorganisation in both Outdoor Retail and our warehousing and distribution operations is now behind us and this should benefit trading in the balance of the year.
"The group is exceptionally well positioned with its retail proposition, financial resources and extended management experience to take advantage of opportunities both in the UK and internationally. Whilst the board recognises that recent acquisition activity has impacted on short term returns, it remains confident that the group is well positioned to deliver earnings growth and increased shareholder returns over the longer term."
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