Sep 13, 2016
JD Sports profit up 73 percent on sports fashion sales growth
Sep 13, 2016
JD Sports said its profit rose by 73 percent in the first half of the year thanks to "exceptional" sales growth in its sports fashion stores, driving shares in the British retailer to a record high on Tuesday.
It said any gain from fellow retailer Sports Direct, which has been hit by criticism for the way it pays and treats its employees and communicates with investors, was marginal as the two companies were targeting different consumers.
JD Sports has been one of the British retail sector's star performers in recent years and has overtaken Sports Direct as the country's biggest sportswear retailer by market value.
Shares in JD Sports rose by as much as 8.2 percent in early trading in London, making them highest percentage gainer on the FTSE mid cap index. The stock has risen 28 percent in the year to date.
Asked whether there had been any sales gained as a result of Sports Direct's high profile difficulties, JD Sports' chief financial officer Brian Small told Reuters:
"Only marginally really...we serve a different range of customer."
JD Sports, which runs fashion and outdoor retail chains such as Scotts and Blacks posted a 73 percent jump in first-half pretax profit, which it said was led by a strong performance in its sports fashion business.
The firm, which has most of its 900 stores in the UK but is expanding in the Netherlands, Spain, France and Germany, said underlying sales at its core sports fashion business rose by about 10 percent in the 26 weeks to July 30.
Revenue for the period grew 20 percent to 970.6 million pounds.
The stock was up 4 percent at 13.88 pounds at 0815 GMT.
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