18th Sep 2013 08:28
LONDON (Alliance News) - JD Sports Fashion PLC Wednesday said it more than double its pretax profit in the first half of the year, buoyed by strong trading in its core Sports business in the UK and Ireland.
The sports-fashion retailer increased its interim dividend by 3.5% to 4.45 pence per share, and said it is confident in meeting current full year expectations.
The company reported a pretax profit of GBP6.1 million in the six month to June 30, compare with a pretax profit of GBP2.9 million a year earlier. Net profit was GBP4.5 million, compared with a net profit of GBP2.1 million a year earlier
JD Sports said that revenues rose to GBP567.4 million, compared with GBP556 million a year earlier. However, it noted that its prior year included GBP28.1 million in revenue from its now-disposed rugby heritage brand, Canterbury.
It also said that the trading performance from its fashion and outdoor divisions continued to be affected by company reorganisation and restructuring in the period.
JD Sports said that in contrast to its strong trading performance in its sport division, its fashion arm, including brands Bank and Scotts, but excluding Premium, continued to fall, with like-for-like sales in the first half declining by 2.2%.
It said its core UK and Ireland sport division, and fashion fascias combined, rose 5.8% on a like-for-like basis in the first half, and was up 2.8% in the five weeks to September 7.
The company said that it expanded further in Europe, by opening new stores in France and Spain, and acquired its first stores in Holland and Germany.
The company, which entered the outdoor market in January 2012 with the purchase of Black Leisure Group from administration for a total of GBP20 million, said that it has now completed the restructuring of its outdoor division, after relocating its head office and hiring a new management team. It said that the Blacks and Millets store chains now have a lower cost base, and it is confident in its future for profitability.
JD Sports shares were down 1.1% or 11.70 pence mid morning Wednesday, trading at 1,013.30 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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