JD Sports encouraged by record set of results
Retailer JD Sports has hailed another record set of results and upped its full-year earnings outlook after robust sales.
The group cheered an “exceptional first half” after it saw pre-tax profits leap a third higher to £102.7m in the six months to July 29.
It said full-year profits were now set to come in towards the upper end of market expectations, currently in the range of £268m to £290m.
Executive chairman Peter Cowgill said strong sales across its core UK and Ireland stores underpinned the half-year profits leap, but he also hailed progress on expanding internationally.
Mr Cowgill said: “This is another pleasing result, demonstrating the strength of our highly differentiated multi-channel proposition and our ability to prosper in an increasingly competitive market for athleticinspired footwear and apparel.”
He 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.”
The group notched up a 3% rise in UK and Ireland like-for-like sales, while sales rose 7% across mainland Europe on a constant currency basis.
Its record first-half performance comes despite fears over trading in June after the group said it faced margin pressure and that comparative sales would be affected by the timing of the Islamic festival of Eid, which marks the end of Ramadan.
But JD Sports confirmed in its halfyear figures that its profit margin was slightly below the previous year as it has faced soaring buying costs as a result of the Brexit-hit pound.
The group continued its store expansion both in the UK and overseas in the half-year, opening 40 shops on a net basis.
It said 23 of these were in mainland Europe and a similar number are expected to open in the region over the second half.
Meanwhile, shares in five-a-side football firm Goals Soccer Centres slumped yesterday after the firm reported falling profits and said that turnaround plans are taking longer than expected.
The firm saw a 25.7% fall in pre-tax profit to £2.6m in the first half of the year, and said that like-for-like sales in the second half will grow at a slower rate than anticipated.
Goals said the slowdown is linked to underperforming sites which have “not received the required level of arena investment” and pressure on consumer spending.
The firm added the “turnaround to profitable growth is taking slightly longer than anticipated”.
Shares tumbled by over 10% in morning trading to 93p.
Revenue in the six months to June 30 rose 2.2% to £17.4m, while likefor-like sales grew 1.6%.
Boss Mark Jones struck a positive note: “We have begun our journey in turning round the business and there remains considerable opportunity to deliver continued improved performance and returns from the business.”
Goals returned to profit last year after posting a loss in 2015 and has been boosted by a new strategy under Mr Jones. Part of his five-year plan includes a refurbishment programme, which has seen upgraded ProTurf pitches, new LED lighting systems and renewed stadia boards at pitches across its estate.
In July, Goals also agreed a 50:50 joint venture with Manchester City owner City Football Group, which will stump up US $16m (£12m) to finance the launch of new sites across America.
The announcement came as Goals called time on merger talks with rival Powerleague.