JD’s festive sales top expectations
JD Sports Fashion will beat annual profit expectations of around £75m after Christmas sales trumped its own targets.
The Bury company, which has been one of the strongest performers on the high street for several years, said sales in the five weeks to Christmas, excluding its French operation, had risen 2.5% on a like-for-like basis.
Unlike fellow retailers Mothercare and HMV, which have also reported festive figures this week, JD said trading had not been badly affected by December’s cold snap. This was due to the hard work of staff, the company said.
The upbeat trading statement was tempered with a warning that the next financial year would present “significant challenges” as a result of the increase in VAT to 20% and inflationary pressures, most notably surging raw material prices and wages.
As well as the JD Sports brand, the company trades under the Bank, Scotts and Size? brands in this country, and Chausport in France. It has more than 500 stores in total.
Executive chairman Peter Cowgill said: “The Christmas trading performance from the group’s main retail fascias has again been pleasing and in excess of our expectations.
“I am particularly grateful to all our staff who by their endeavour and commitment ensured that we were largely unaffected over the full five week period by the difficult weather conditions experienced in December.
“This performance is the result of our strong product and brand proposition presented in inviting retail settings.
“Nevertheless the trading environment facing all retailers, and perhaps clothing retailers in particular, will provide additional challenges in the year to come.”
Mr Cowgill told TheBusinessDesk.com that the company was looking at further expansion overseas: “Watch this space, we may have some news there. We have recently opened three JD Sports stores in France – our first there – and the early signs are good.”
From a local point of view he said trading in the Trafford Centre had not been impacted by the recent opening of Foot Asylum, a business owned by the original founders of JD Sports, John Wardle and David Makin.
JD Sports Fashion will announce its results for the year to the end of January on April 13.
