Now JD Sports leaves Ashley in the shade
Chain bucks high street gloom with record results
JD SPORTS defied the High Street gloom to rake in record profits as it stretched its lead over rival Sports Direct.
Shares in the chain jumped to a record high after it posted a 15.4pc rise in profits to £399.9m in the year to February 2.
Same-store sales climbed 6pc as chunky Fila footwear and Vans Old Skool trainers flew off the shelves.
The bumper results will come as a blow for Sports Direct boss Mike Ashley, who in 2011 predicted that he could ‘finish off’ his rival.
Peter Cowgill, the chief executive of JD Sports, said: ‘I don’t think his prediction was quite right.
‘ Let’s hope he’s better with his gambling.’
Ashley, 54, has lost hundreds of millions of pounds on a series of illjudged retail bets.
They include one on Debenhams which crashed into administration last week, wiping out his near-30pc stake. JD Sports has also been on a spree, snapping up US brand Finish Line for £396m and Liam Gallagher’s menswear chain Pretty Green.
The Finish Line deal netted Ashley a £37m payout after he was forced to sell off his 9.85pc stake. Currently, JD Sports is preparing to fork out £90m for its smaller rival Footasylum. JD Sports is now worth £5.6bn, a figure more than three times the value of Sports Direct, which is worth £1.6bn.
Cowgill added: ‘Mike’s a bright guy and he’s gone down one route in terms of his High Street development and we’ve taken another route. We’ve stuck to our knitting largely and he’s expanded over and beyond. As it stands at the moment I can only reflect on the results. I would never knock Mike Ashley in that respect.’ JD Sports’ roaring success is in contrast to many traditional retailers which are battling to keep hold of customers as more shoppers go online.
Just last week Debenhams crashed into administration, while retailers such as Topshop owner Arcadia, Marks & Spencer and New Look have been shutting stores.
Cowgill explained that JD Sports has focused its attention on attracting and retaining younger shoppers, with the majority of its customers aged between 16 and 24.
‘We’ve recognised the increasing relevance of millennials and generation Z and we have worked tirelessly at delivering consumer experience in both bricks and mortar and online,’ he said.
Shares in the retailer jumped 8.4pc, or 44,6p, to 576.6p last night as investors celebrated the retailer’s success.
Analysts at Peel Hunt said: ‘It’s hard to think of such an impressive showing anywhere else in retail and JD’s sales growth and profit delivery is stellar, despite the negative background and awkward weather for outdoor.
‘The shares have gone from strength to strength and we see no reason why this won’t continue as the strength of the JD brand, its management and its general forward momentum show no sign of waning.’