JD Sports improves profits

22nd Sep 2009 07:03

Trainers and tracksuits group JD Sports has raised both first half profits and like for like sales, but warns the outcome for the year will depend on crucial Christmas trade.Profit before tax for the 26 weeks ended 1 August rose 11% to £10.1m on revenue up 8.4% to £324m. Excluding a net exceptional charge of £3.2m, profit rose 14.5% to £14.2m. Gross margin stayed at 42.8%.Like for like sales were up 0.7%, with sports stores up 0.3% and fashion outlets up 3.1%, and are 'satisfactory' in the six weeks to 12 September, up 0.8%. Sports is up 1.3% and fashion down 2.4%. Same store sales had risen a 1.7% between 1 February and 30 May.'The like for like sales performance in the balance of the year will be measured against weaker comparatives in October and November last year but with challenging conditions for the consumer continuing, the result for the full year remains very dependent on the sales and margin performance in December and January,' said executive chairman Peter Cowgill. 'Nevertheless, the board believes that the group is well positioned to deliver on market expectations.'Cowgill says the result means the firm can 'look positively' at acquisition opportunities as they arise.The interim dividend rises 6.5% to 3.3p a share.