JD Sports’ first-half profits rise 20%

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JD Sports’ first-half profits rise 20%

By: Jeff James

Listed Under: Top Story

Published: Wednesday, September 21, 2011

Profits at JD Sports rose 20.6 per cent to £20.1 million during the first six months of 2011, while group revenue increased by 14.6 per cent to £439.8 million for the same period.

Gross margins declined slightly to 48 per cent (2010: 48.2 per cent).

£700,000 of stock was looted from 16 JD stores during the recent riots in England.

One outlet in Woolwich, which suffered fire damage, is still not open.

JD’s distribution business, which comprises Canterbury, Topgrade, Deakins, KooGa, Kukri and Focus, made a first half operating loss of £500,000, compared to £1 million in 2010, primarily due to increased profit from Canterbury, where first-half profits grew to £900,000 (2010: £500,000)

"Our continual focus on exploiting all avenues of revenue growth and margin protection has enabled us to deliver a level of profit that represents a platform for meeting expectations for the full year, although trading conditions remain tough,” says executive chairman Peter Cowgill.

"Trading since the period end has continued to improve, with gross like-for-like sales for the core UK and Ireland retail fascias in the seven-week period to September 17 up by 3.3 per cent.

“The result for the full year remains dependent on the sales and margin performance in December and January, and we will issue an interim management statement in the third quarter in November.”

Cowgill adds: "We continue to look for appropriate acquisition opportunities which can deliver additional sources of future earnings growth, principally in overseas sports retail, but also to complement our core retail fascias.

"The board again believes that the group is well positioned for future growth across its markets and trading is in line with its expectations."