11th Sep 2018 08:16
LONDON (Alliance News) - JD Sports Fashion PLC said Tuesday it made "excellent progress" in the first half of its financial year despite a backdrop of challenges facing UK high-street retailers.
For the six months ended August 4, the sportswear seller's pretax profit rose 19% to GBP121.9 million from GBP102.7 million a year prior. This was achieved on revenue increasing 34% year-on-year to GBP1.84 billion from GBP1.37 billion.
Earnings before interest, taxes, depreciation and amortisation increased 26% to GBP171.8 million from GBP136.8 million a year ago.
Executive Chairman Peter Cowgill said: "This is another record result for our group demonstrating that our multibrand multichannel premium offer has resilient profitability in its core UK and Ireland market with capacity for continued growth across an increasing number of international markets."
Like-for-like sales in the period were up 3% "against a backdrop of widely reported retail challenges in the UK", the FTSE 250-listed retailer said.
The company proposed an interim dividend increase by 4% to 0.27 pence per share from 0.26p in the comparative year ago period.
Looking to the second half, JD Sports said that sales to-date have continued at "similar levels to those in the first half".
Despite continued growth in online shopping among UK consumers, JD said its bricks-and-mortar store base remains "essential" as it continues to "expect physical retail to retain most of its current level of importance" due to the "social nature of consumer's shopping trips", their impulsivity when buying and the importance of cash among the company's demographic.
The retailer opened 18 stores across Europe and 21 in the Asia Pacific region during the first half and said it does not anticipate "a material movement in the size of our store base" despite working with landlords to ensure "the maximum flexibility and the lowest committed cost possible" across its lease portfolio.
"We remain confident that we are well positioned to deliver an outturn in line with current market expectations which, including a part year from Finish Line, range from GBP337 million to GBP345 million and we also remain encouraged by our prospects for future growth," Cowgill added.
JD Sport shares were trading marginally lower at 487.30p early Tuesday morning, rebounding quickly from an opening drop.
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