Earnings rise at JD but fashion sales slip
RETAILER JD Sports Fashion has continued to grow earnings and margins but its fashion business suffered a sluggish first half.
In the 26 weeks to July 31 pre-tax profit jumped 64% to £16.6m on turnover of £383.8m, up 18.5%.
On a like-for-like basis sales increased by 2.8% during the period and 2.7% in the four weeks to August 28. The gross margin rose by 0.2% to 48.2%.
But during the 26-week period sales were down 3.8% at the group’s fashion stores, which include Bank and Scotts. In contrast the sports shops increased revenue by 3.9%.
This trend has been reversed in recent weeks with the fashion shops recording a 7.1% increase in sales in August, while sports rose by 2.1%.
JD said operating losses before exceptional items in the fashion shops fell from £2.7m to £2m. The gross margin increased by 3% during the half-year.
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Chairman Peter Cowgill, pictured below, said: “The improvement has largely been driven by the sports fascias but margin improvements in the fashion fascias and their recent trading performance lead us to believe that they too will be steadily growing contributors to our results.
“We are up against tough comparatives over the balance of the year and the economic outlook remains uncertain but the good foundation of these first half results and our strong cash position mean both, that we have proposed another significant dividend increase, and we are well positioned for further internal and external investment in our growth.”
The Bury-based group said its stake in Topgrade Sportswear increased from 51%
to 80% and the development of its Getthelabel.com website and catalogue business is continuing to, “progress satisfactorily”.
It said the acquisitions of the Sonneti and Chilli Pepper brands had further strengthened the group’s range of brands.
The business, which trades as JD Sports, Chausport, Size, Bank and Scotts from over 530 stores, has increased the interim dividend by 15% to 3.8p.
