JD Sports trading in line, margins squeezed

19th Jun 2013 07:36

Sportswear and outdoor clothing and equipment retailer JD Sports Fashion said overall group performance is in line with market expectations.Trading at its main business, the core UK and Ireland Sports Fascias, remained robust, with like-for-like (LFL) sales for the 18 weeks ended June 8th rising 7%. The UK and Ireland figures now include Champion, which is now largely serviced from the UK, the group explained. The main Fashion Fascias (Bank and Scotts) have seen LFL sales decline by 5% in the same period. This fall is concentrated in Bank where the benefit of the new Head of Ladieswear is not expected to be seen until later in the year, it said. As a result, the performance recorded in the year to date will lead to an increased loss being reported for these Fascias in the first half.At its loss-making outdoor division, positive LFL sales were recorded, but at a significant margin sacrifice, it said. "The development of profitability in these Fascias remains a work in progress. We expect them to benefit from the imminent final rationalisation and relocation of their head office functions at Bury and the increasing influence of new management on the propositions," it added."We expect the Outdoor Fascias to make a substantial but significantly reduced loss in the current year with the biggest improvement coming in the second half." The results for the distribution division in the first half will be impacted by the disposal of Canterbury and the knock on impacts of JJB's disappearance from the market.Lee Bagnall started work this month as Managing Director of Millets. CJ