JD fashions 26% leap in profits
JD SPORTS Fashion, the North West retail group, defied the gloom on the high street as underlying profits soared 26% to £67.4m – beating City forecasts of around £63m.
The Bury company, which in the last year has expanded its reach through selective acquisitions in new locations, hiked its dividend by 65% to 14.7p per share after the bumper figures.
Group revenue in the 52 weeks to January 30 was up 15% at £769.7m. After exceptional items of £5m – which included a £4.1m gain on the sale of its stake in Wigan-based rival JJB Sports, JD saw profit rise 61% to £61.4m.
Executive chairman Peter Cowgill said the group’s continued strong performance – its sixth successive year of sales and profit growth – “reflects the strength and uniqueness of our brand and fascia offers as well as the strength of our management teams.”
He said this year’s figures had been achieved despite “less than favourable economic conditions and exchange rates.”
After buying a French sports shoe retailer, Chausport, last May, JD is looking to use it as a springboard for a rollout there. Based near Lille in northern France, Chausport has 75 smaller stores.
Mr Cowgill, pictured, said: “We see opportunities for growth in France. We expect to introduce progressive access to JD brands, exclusive product and supplier terms over the next two years.”
At home, there will be a roll-out of the Bank fashion brand, which currently has 65 stores in the North and Midlands he said.
Last year the group also diversified with the purchase of the Canterbury and KooGa rugby brands.
JD has opened a new channel to market with the launch of getthelabel.com, which sells ports and fashion brands at discounted prices through catalogues and online.
Mr Cowgill said:”Opportunities for profit growth overseas, the rollout of our principal fashion fascia, development of our differentiated and own brand proposition, and growth in our distribution business all help to reduce threats to group profitability and give us the opportunity to maintain the positive momentum in our business.”
JD’s shares were up 1.6% at 745.5p in early trading.
