JD Sports sees continued sales improvement
Strategic review ongoing at sportswear retailer
John David Grop, owner of the JD Sports chain, is still seeing an improvement in sales.
The group has seen overall like-for-like sales growth of 0.9 per cent across the 23 weeks to July 10, with 2.6 per cent growth in the core sports business.
JD said a strategic review of the business, focused on the future of its fashion retail operations is continuing. The company’s fashion fascias have continued to trade ‘disappointingly’ as a result of stock buying decisions made last year, resulting in ‘short term pain’ as stocks are cleared.
Across the 23 weeks, six stores opened and 12 closed, including four clearance stores. JD said it would not open more than 12 stores in the current financial year and continues to dispose of poor performing outlets.
The group said a decision by one of the group’s founders, John Wardle, to sell an 11.5 per cent stake in the group to sportswear supplier Pentland “is a strategic investment and Pentland is not in any way influencing the Group’s procurement policy and no discussions have taken place over board representation”.
JD said: “There is still a lot to do but our turnaround plan is progressing. The continuing elimination of poor performing stores and the rationalisation of fashion stocks remain fundamental to the board’s plan.
“The Christmas trading period will as always be crucial to the final result for the year but we believe that the foundations are in place for a more successful trading future.”
