JD Sports relies on speedy sporting start to drag up group H1 numbers

18th Sep 2013 08:46

A record first half performance from its sports stores helped JD Sports Fashion compensate for weaker results from fashion and outdoor shops. Pre-tax profits more than doubled to £6.1m in the 26 weeks to August 3rd and more than tripled to £10m (excluding exceptional items).The restructuring costs relate to the acquired Blacks and Millets outdoor stores after their continuing disappointing results last year, with a new divisional managing director overseeing a lower cost base from improved distribution operations and closing of the former head office. Executive Chairman Peter Cowgill said: "Whilst these reorganisations have had a short term negative impact on the overall group results, we strongly believe that the decisive actions which we have taken were necessary for these businesses to deliver returns in the longer term."While outdoor revenues fell 17% to £43.1m, fashion rose 9% to £71.4 and the core sports arm 14% to £412.8m, lifting overall revenues 2.1%.Cowgill added that the UK sports stores continued to provide the group with a solid platform for overall profitability and future cash generation, with 25 stores acquired in Holland and Germany in the summer to add to the 19 existing outlets in France and Spain. "The robust trading in the sports fascias has continued since the period end although trading in the fashion fascias continues to be more difficult," Cowgill said. He revealed that the like-for-like sales for the core UK and Ireland sport and fashion fascias in the five week period to September 7th were up by 2.8% and that the board were confident of delivering results in line with current expectations. Analyst Andrew Fitchie at Investec kept his profit and earnings forecasts unchanged at a normalised £69m and 102.9p per share respectively, despite altering his divisional build up to reflect trading in the first half. "Our Outdoor operating loss has been increased by £5.1m, but has been offset by a broadly equivalent improvement in Sports. "As ever, the full year outturn remains highly dependent on the key December and January trading period."Shares in JD were flat at 1,025p by 09:11 on Wednesday. OH