Pretax profit soars at JD Sports after record six months

Lancashire sports retailers JD Sports Fashion has reported a record result for the half year ending 2nd August with pretax profit hitting £16.5 million, up from £6 million at this stage last year.

The retailer has also reported a considerable increase in revenue from £587.3 million to £721.4 million for the same period.

Group operating profit has more than doubled to £21 million, from £10.4 million last year, with exceptional performance in the company’s sports arms.

JD’s sports arm has seen operating profits increase to £34.8 million from £26.1 million, benefitting from the trends for branded athletic footwear seen over the last year.

JD has also increase its presence in France, having opened another four stores bringing the total to 21 at the end of the period, including two new stores in Paris’ fashionable metropolitan area.

Tiso, which was acquired by JD in November 2013, has made a small loss in the period, which was in line with expectations.

Peter Cowgill, executive chairman, said: “The Group has delivered record results for the first half with encouraging progress in the principal areas of the business, notably our UK and European Sports fascias.

I am also pleased with the positive progress in our Outdoor business, particularly since the move to our central facilities was only completed in July last year. Fashion continues to disappoint, albeit trading more positively in the second quarter. The second half of the year is traditionally stronger for the Fashion fascias. “Our Sports operations continue to provide the engine for profit growth and cash generation in the Group and will therefore continue to be the primary focus of investment. “The Board recognises the demanding comparatives of the second half of the last financial year, particularly in the core UK and Ireland Sports fascias where like for like sales increased by 11.2%, as well as our significant dependence on Christmas trading but following the robust performance of the business in the first half believes that the Group is well positioned to deliver results towards the upper end of current market expectations.”

Image used under wikipedia creative commons license. Credit: ReissOmari

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