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.
Sporting goods and retail company Sports Direct is poised to acquire the Hot Tuna surf fashion brand in a GBP950,000 (US$1.45m) deal....
Retailer JD Sports Fashion believes its full-year result will meet current expectations, despite its recent GBP20m (US$31m) acquisition of Blacks Leisure....
Retailer Sports Direct has urged the UK Office of Fair Trading (OFT) to investigate the outdoor and sports retail markets following the sale of Blacks Leisure to rival JD Sports....
Sportswear retailer JD Sports is to acquire Blacks Leisure Group, the UK's largest outdoor clothing and equipment retailer, from its administrators for GBP20m....
- Nike reaffirms US production commitment
- M&S to launch supply chain human rights policy
- Levi Strauss raises the bar on sustainability
- VF pushes ahead on chemicals management
- Gap and H&M back Myanmar path to labour reform
- Myanmar minimum wage set at US$3.2 per day
- China cotton stockpile auction may shake up market
- Far Eastern to invest $323m in Vietnam textile hub
- C&A to add "accurate fit" label to garments
- US retail landscape "mediocre" over next 5 years