JD Sports sees slow Christmas trading
Like-for-likes dip in tough market
January 15 2003
Poor Christmas trading across the clothing sector saw sales fall at sports and leisurewear retailer John David Group in the six weeks to January 11.
Like-for-like sales fell by 1.36 per cent in the JD Sports chain 2.03 per cent in the First Sport Division. Total sales increased by 11.36 per cent in JD Sports and fell 3.21 per cent in First Sport, which has seen a small number of store closures since last year.
The company is saw the same slow pre-Christmas trading as many other retailers, with sales only picking in the post-Christmas sales. Stocks are in line with plans, although overall margins are running at a lower level than expected, leading the group to lower profits forecasts for the year January 31.
Chairman John Wardle said: “I am disappointed with our trading performance during the key Christmas period and our overall reduced gross profit margin. I remain cautiously optimistic, however, that trading will improve in the new financial year following the integration of the First Sport Division and particularly as we are now in full control of the total buy in this division from Spring 2003.
“Stocks continue to remain in line with plan and are expected to resume to normal trading and margin performance during February 2003. The past year has been a demanding one, having absorbed a significant division into our operation – almost doubling the size of the Group – and I remain confident that this division will enhance our earnings in future periods. I therefore also continue to remain confident in our strategy, future success and long term profitability of the Group.”
