Sports shops spark profits surge at JD Sports Fashion
JD SPORTS Fashion, the North West retailer, has reported strong annual results, led by a dazzling performance by its JD Sports and Size businesses.
Pre-exceptional profits surged 27.3% to £76.99 on sales up 5.7% at £1.3bn. Stripping out exceptional items of £19.1m – mostly made up of a £11.8m goodwill write-down – the group’s bottom line profits were up 5% at £57.8m.
On the back of these figures the group raised its dividend and said it would continue to expand its operations in mainland Europe, where it has shops in Spain, France, the Netherlands and Germany.
The Bury-based group said its sport division (563 shops) had an “excellent year” with operating profit up £15.5m to £93.4m.
It said it was getting to grips with its outdoor division, comprising Blacks and Milletts, which it acquired from administration two years ago. Divisional losses were cut to £8.8m in the year to February 1 from £14.9m last time, and the unit delivered a break-even performance in the second half,
The fashion division, comprising brands such as Bank Scotts, Tessuti, Nicholas Deakins and newly acquired Cloggs and Ark, had a challenging year, with increasing losses of £6.4m, compared with £1.7m in 2013.
A new MD, Gwynn Milligan, was appointed to turn the Bank business around and her strategy is to improve the supply chain, meaning the business can react more quickly to the latest youth fashion trends, while also becoming more competitive on price.
Overall, executive chairman Peter Cowgill, was pleased with the results.
“I am delighted to report that our core sports fascias delivered another year of substantial progress.
“It is particularly pleasing that they have produced a record result in our core markets in the UK and Ireland. These businesses continue to provide the foundation for profit and expansion in the group.
“I am encouraged that the Blacks and Milletts business achieved a significant improvement in the second half of the year and we expect continued progress in the new financial year.
“The group continues to be well positioned with its retail proposition, increased financial resources and extensive management experience to take advantage of opportunities both in the UK and internationally.”
