Sports stores dazzle for JD in record first half

JD SPORTS Fashion, the retailer with more than 900 sports, fashion and outdoor shops across Europe, hailed an “excellent” performance of its sports stores as first half profits raced to a new record.

The Bury-based group said profits doubled from £9.9m £19.9m as revenues in the 26 weeks to August 2 rose 27% to £721.4m.

The company said the progress of its Sports division was not confined to JD Sports in the UK. Like-for-like store sales growth across the combined European fascias was 13%. Divisional operating profit soared from £26.1m to £34.8m.

There results reveal that the efforts to lead a turnaround in the loss-making outdoor business, trading as Blacks and Milletts, are beginning to pay off as losses fell from £8.9m in half one 2013 to £5.6m and like-for-like store sales growth of 12%.

In the Fashion division, there is more work to do and a handful of poorly-performing stores have been closed. Operating losses rose from £6.8m to £8.2m.

Executive chairman Peter Cowgill said: “Our Sports operations continue to provide the engine for profit growth and cash generation in the group and will therefore continue to be the primary focus of investment.

“The board recognises the demanding comparatives of the second half of the last financial year, particularly in the core UK and Ireland Sports fascias where like-for-like sales increased by 11.2%, as well as our significant dependence on Christmas trading but following the robust performance of the business in the first half believes that the group is well positioned to deliver results towards the upper end of current market expectations.”

He said there would be more European stores opened in the second half in Germany, France and the Netherlands
 
During the period JD made two small bolt-on acquisitions to boost its outdoor division. These were 14 stores trading as Oswald Bailey and based in the south and three stores in Lancaster, Keswick and Skipton trading as Ultimate Outdoors.

In addition, the company has  opened a new concept ‘Ultimate Outdoors’ store in Preston where it has combined its outdoor offerings in a larger space.

Mr Cowgill said: “As the name suggests, we believe that this fascia and website can be the destination of choice for any outdoor consumer as it provides easy access to our full outdoor offer, both technical and casual.”

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