UK: JD Sports Fashion sales offset by "disappointing" Blacks
Retailer JD Sports Fashion Plc expects full-year profit to come in at the low end of expectations after gains in its branded sportswear business continue to be offset by "significant" losses in its outdoor clothing stores.
In a Christmas trading statement released today (10 January), the retailer said sales at its JD Sports stores in the UK and Ireland rose 3.2% in the seven weeks to 5 January.
It added that cumulative like-for-like sales for these fascias over 49 weeks rose 2.4%, margins are close to last year's levels, and headline earnings are set to marginally exceed those of last year.
But its Bank and Scotts fashion stores saw like-for-like sales fall 7.9% in the seven-week period, with a decline of 3.9% for the year to date.
And the Blacks and Millets outdoor clothing chains, which were bought out of administration in January last year and operate 176 stores, put in a "disappointing" performance in the Christmas period.
Blaming this on the previous management team, the retailer is taking steps to improve trading with new products, store refurbishments and the appointment of former Cotswold Outdoor buying and merchandising director Ken Reeve as the new MD of Blacks.
"Next year will also see the benefit of cost reductions in various areas of the business and we anticipate that losses will reduce substantially as the new year progresses," it added.
Full-year profit before tax and exceptional items is likely to be at the lower end of market expectations, which is currently GBP60m, JD Sports said.
Matt Piner, research director at retail analyst Conlumino, points out that "JD was afforded a big opportunity this Christmas, with the demise of rival JJB presenting a chance to hoover up high street spending on sports-related products.
"In this sense," he says, "the growth is actually slightly disappointing and it's likely rival Sports Direct has instead positioned itself as the main beneficiary.
"The weaker parts of its business are an unwelcome distraction, but its core offer is also much less compelling than major rival Sports Direct. Performance has been flattered this Xmas, but going forward there is no longer a soft underbelly to feed on."
The number of UK retailers falling into administration in the first half of 2013 fell by nearly one-third, with new research suggesting those that remain in business are now stronger and more robust....
Retail group JD Sports Fashion has bought the Ark fashion chain out of administration, in a move that saves ten shops and 160 jobs....
Outdoor retail chains Blacks and Millets are expected to make a "substantial, but significantly reduced" loss this year, parent company JD Sports Fashion said....
UK sportswear retailer JD Sports Fashion has today (3 June) confirmed plans to open its first ten stores in the Netherlands later this year....
- Low labour cost countries linked to highest risks
- Why should brands care about China cotton?
- UK reshoring hub hit by sweatshop claims
- New fibre and fabric innovations for outdoor wear
- China cotton: implications and opportunities
- South Africa to grow grass for recyclable textiles
- US West Coast port contract reached
- 30% of Adidas cotton from sustainable sources
- Activewear driving US apparel spend
- Benetton to embark on living wage roadmap
- Outdoor performance apparel: peaks, valleys, and green fields
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Global market review of swimwear - forecasts to 2019
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Apparel Retail: Top 5 Emerging Markets Industry Guide