JD Sports report booming sales and “record” profit

JD Sports Fashion has reported a 19 percent jump in first-half earnings resulting in rising profits.

Revenues rose by 35 percent to £1.8 billion in the 26 weeks to Aug 4 causing pre-tex profits to grow to £122 million.

Peter Cowgill, the group’s executive chairman, said this was another “record” result.

“Against a backdrop of widely reported retail challenges in the UK, it is extremely reassuring that the profitability in the UK and Ireland Sports Fascias has been further enhanced,” said Cowgill.

“This reflects the value of the investments that we have made over a number of years in developing a dynamic multichannel proposition which marries the best of physical and digital retail enabling customers to interact with us where and when they want and through the channel of their choice.”

The figures come off the back of strong sales in mainland Europe and Asia, where the group have opened many stores. 

Analysts at Peel Hunt said: “Even given the constant upwards momentum in forecasts, we still don’t feel we’ve got to the bottom of the potential here, especially as the US could be incredibly exciting.”

Sales were also strong in the UK and Ireland. JD Sports have said this reflects the investment made in joining the online and bricks and mortar operations.

UK retailers including Homebase, Mothercare (LON: MTC) and New Look have been closing many stores amid the difficult trading conditions. JD has opened five new sites in its home market over the same period.

“The store base remains essential to brand awareness, the customer’s desire to see, handle and try the product, and our ability to provide multiple delivery points,” said the company.

The group’s outdoor brands also saw total like-for-like sales, after a “very challenging” second quarter due to the heatwave affecting customer numbers.

Shares in the group (LON: JD) are up 0.44 percent at 489,57 (1031GMT).

 

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