PACKING A PUNCH
JD Sports defies the gloom on the high street to post surging profits
RETAILER JD Sports Fashion has defied gloomy trading on the high street to see annual profits surge by almost a quarter.
The sportswear chain reported a better than expected 24 per cent leap in pre-tax profits to £294.5m for the year to February 3.
On an underlying basis, profits rose 26 per cent to £307.4m.
It said like-for-like sales rose by 3 per cent across all its stores and by 7 per cent including online trading over the 53 weeks.
The group cheered another “exceptional year”, although the sales rise marked a slowdown on the double-digit hikes seen in the previous three years.
It comes as the wider UK retail sector has suffered a dismal start to the year, hit by surging costs, freezing weather and snow disruption, as well as a slowdown in consumer spending.
While the ‘Beast from the East’ swept in after JD Sports’ financial year end, the group said it was satisfied with progress in current trading, although it declined to update on sales due to this year’s significant change in the timing of Easter.
JD Sports said its global expansion continued apace in the past year.
It has also recently announced its US market debut after agreeing to buy up American sportswear company Finish Line for £388m.
Excluding this deal, which has yet to complete, JD Sports now has 1,237 stores worldwide, including 385 shops in the UK and Ireland.
Analyst Jonathan Pritchard at Peel Hunt said: “At a tough time for the industry and the consumer, that’s a standout effort and it is clear that the JD offer is exactly what the customers want, be that physically or online.
“Coming as it does at a moment when the big brands are thinking further about consolidating their retailer lists, such form is invaluable.”
It is clear that the JD offer is exactly what the customers want. Jonathan Pritchard, analyst at Peel Hunt