JD Sports hails record first half
JD Sports has said its full-year results are likely to be towards the upper end of market expectations after a “record” first half.
In the six months to 2 August, pre-tax profit before exceptional items rose to £20 million from £10 million a year earlier while revenue grew by 27% to £721.5 million.
The group said its core sports fascia had an “excellent” first half with operating profits before exceptional items increasing to £34.8 million from £26.1 million last year. As a result, it will continue to be the main focus of the group’s investment. Like-for-like stores sales across the combined European Sports fascias grew by 13%.
JD’s fashion division fared less well as operating loss before exceptional items grew from £6.8 million to £8.2 million. This included £0.7 million of pre-opening costs associated with JD’s new ‘Open’ fascia.
Never Miss a Retail Update!Within the group’s outdoor business, which includes Blacks and Millets, like-for-like store sales grew by 12% while operating loss reduced from £8.9 million to £5.6 million. Tiso, which was acquired by JD Sports in November 2013, made a small loss in the period in line with expectations.
JD Sports executive chairman Peter Cowgill said: “The group has delivered record results for the first half with encouraging progress in the principal areas of the business, notably our UK and European sports fascias.
“I am also pleased with the positive progress in our outdoor business, particularly since the move to our central facilities was only completed in July last year. Fashion continues to disappoint, albeit trading more positively in the second quarter. The second half of the year is traditionally stronger for the fashion fascias.”
Looking ahead he added: “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.”
