Tracksuit seller is now bigger than M&S
£5.1bn JD races past struggling High St stalwart
JD SPORTS is now worth more than Marks & spencer after it defied the high street gloom to post soaring sales and profits.
Revenues at the sportswear chain jumped 35pc in the six months to August 4 as a ’90s revival saw 15-to30-year-olds snap up Fila trainers and ellesse tracksuits.
Profits surged 19pc to £121.9m during the period. same-store sales in its UK shops were flat but it was boosted by its online business. Demand for brands sold by JD sports, which include nike, Adidas and north Face, have seen its value hit £5.1bn – ahead of M&s with a value of £4.7bn.
In its latest bid to turnaround its fortunes, M&s this week unveiled TV presenter holly Willoughby as its new ‘style ambassador’.
Laith Khalaf, senior analyst at hargreaves Lansdown, said: ‘There’s not too many retailers on the high street who can boast a 50pc rise in their share price over the past year, but that’s the sweet spot JD sports finds itself in. It is now knocking on the door of the FTse 100.’
earlier this year online retailer Asos overtook M&s in market capitalisation, as Marks struggles to keep up with fastchanging fashion tastes.
online food delivery firm Just eat, which was founded in 2001, is also worth more than the 134year-old high street retailer.
JD sports has recently set its sights on expanding overseas as it attempts to crack America, Asia and the rest of europe. In June, it forked out almost £400m on Us chain Finish Line, its biggest deal since it was founded in 1981. The Manchester-based firm has no plans to open more stores in the UK and Ireland but it is preparing to almost double the size of shops in Liverpool, Manchester and Dublin.
Khalaf added: ‘JD’s performance shows it’s possible to thrive on the high street, though future store openings in this country are likely to be limited. That means the retailer will be looking to digital and overseas sales, and possibly further acquisitions, to drive growth forward from here.’
JD sports’s chief executive Peter cowgill, 55, said: ‘There’s a lot more of a relaxed approach to clothing in clubs and bars than there used to be – trainers are a lot more acceptable as a form of footwear.
‘There has been a culture change and we’re right at the leading edge of providing the best product for that lifestyle.’