Big jump in sales for Bury firm JD Sports
SALES ARE UP 41 PER CENT AND PRE-TAX PROFITS INCREASE TO A RECORD £103M
BURY-HEADQUARTERED JD Sports has reported a big jump in sales in the first half of the year resisting fears among sports fashion retailers.
Sales were up 41 per cent to £1.4bn in the six months ending July 29.
Pre-tax profit also rose 33 per cent to a record £103m.
JD Sports’ executive chairman, Peter Cowgill, credited the “continued strength” of the firm’s core UK and Irish stores.
He said: “I am delighted to report that the Group continues to make strong progress with profit before tax for the first half increased by a further 33 per cent to a new record level of £102.7m.
“This is another pleasing result demonstrating the strength of our highly differentiated multichannel proposition and our ability to prosper in an increasingly competitive market for athletic inspired footwear and apparel.
“The base of our ongoing excellent multichannel retail performance comes from the continued strength of our core UK and Ireland Sports Fashion fascias. “We have strengthened our foundations by significant progression internationally both instore and online. “As a result the JD fascia now has a much broader store and multichannel consumer reach and brand influence globally.” The Greater Manchester-based retailer has grown strongly over the past few years due to rising demand for fashionable sportswear, and ‘athleisure’ goods. However, a fall in like-for-like sales at rival Footlocker in August led some to warn the sector was slowing down. Peter added: “We are encouraged by the sales to date in the second half which have continued at similar levels to those in the first half supporting our continued confidence in the robustness of the JD proposition. “We expect the year end outturn to be towards the upper end of market expectations, which currently range from approximately £268m to £290m, and remain confident that we are appropriately positioned to deliver further profitable growth and enhance long term shareholder value.”
In April shares in JD Sports jumped by nearly 11 per cent as the retailer reported a record set of annual results.
It came as a surprise after the pound’s demise ramped up costs for British businesses, many of which are having to raise prices for consumers as a result.
The group added that while the UK’s vote to leave the European Union means there will be “some uncertainties for the immediately foreseeable future”, its international expansion will have a “clear strategic focus”.
The group opened 54 stores across Europe last year and opened a further two stores in Malaysia.
The first JD store in Australia is due to open shortly.