JD Sports has continued to outperform the struggling UK retail sector as the sportswear group reported rising sales despite the decline of the high street.
In the year to the beginning of February, the company saw like-for-like sales growth of 6 per cent from its sports fashion stores, which it said came despite “a backdrop of widely reported retail challenges” in its core UK market.
“JD is not immune to the widely reported challenges to physical retail in the UK with lower footfall on many high streets, malls and retail parks combined with cost challenges from increasing minimum wage rates and rises in business rates,” said Peter Cowgill, executive chairman.
“Therefore, it is very pleasing that the core UK and Ireland Sports Fashion fascias, the most mature part of our group, have delivered a further increase in sales and profitability.”
Shares in the sportswear group rose about 2 per cent in early London trading.
Its outdoor segment, which accounts for less than 10 per cent of revenue and includes stores such as Blacks and Millets, fared less well as it suffered from “a particularly weather-challenged year”, with mild conditions reducing demand for jackets. The division swung to a loss.
Overall the group reported an increase in revenue of 49 per cent to £4.72bn as it expanded store numbers in Europe and Asia, where it opened a further 39 and 34 shops respectively during the year. It also expanded into the US with the £400m acquisition of shoe store chain Finish Line last March.
Mr Cowgill said the move into “the largest market for sport lifestyle footwear and apparel and the home to many of the global sportswear brands” would boost long term brand engagement, “significantly extending the group’s global reach”.
Profit before tax to February 2 was £340m, up 15 per cent from £295m previously. The group declined to provide detail on like for like performance over the two months since saying the date of Easter would distort the figures, but it said it was “pleased with the continued underlying positive performance”.
Tuesday’s results followed a strong performance from the group over the Christmas period, when it outperformed rivals as it avoided “reactive” discounting.
