UK: JD Sports loses GBP700,000 in stock through riots
- H1 net profit up 23.9% to GBP14.5
- Revenue up 14.6% to GBP439.7
- Like-for-like sales down 0.9%
JD Sports says it lost some GBP700,000 (US$1m) in stock during the UK riots last month, but does not think the unrest will impact its full-year results.
The UK sportswear retailer today (21 September) said losses would have been worse if it had not taken pre-emptive measures to stop looters gaining access to its stores. It said that some 16 stores were looted, and that all but one, in Woolwich, has reopened.
"We are currently working with our insurers on the subsequent claim, covering theft of stock, repair costs and business interruption. We do not believe that the riots will have a material adverse impact on the outturn for the current year," the company said.
The comments came as it booked a 23.9% increase in net profit to reach GBP14.5m for the half ended 30 July. Revenue increased 14.6% to GBP439.7m despite net like-for-like sales falling 0.9% over the period.
Executive chairman Peter Cowgill said trading since the end of the half has "continued to improve" with gross like-for-like sales in the core UK and Ireland retail fascias up 3.3% in the seven week period to 7 September.
Cowgill said the company continues to look for "appropriate acquisition opportunities which can deliver additional sources of future earnings growth principally in overseas sports retail".
Over the half, it bought 50.1% of the Sprinter business in Spain, 100% of the Champion Sports business in Ireland and eight Cecil Gee stores from the Moss Bros Group.
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