UK: JD Sports sales up but margins hit
By Richard Woodard | 13 June 2012
Retailer JD Sports Fashion recorded a 1.5% increase in like-for-like sales in the 19 weeks to 9 June, but margins came under pressure as offers continued to drive the market.
Sports fascias sales were up 1.2% and fashion fascias up 3%, but JD Sports said additional overheads supporting international retail, brands and licensing, and multi-channel development would impact core retail results.
Meanwhile, the company said it was continuing to address the “significant operating issues” in its recently acquired Blacks business, signalling an expected operating loss of GBP10m, with the potential of another charge of up to GBP5m linked to restructuring.
Analyst Investec welcomed the results and reiterated its “buy” recommendation, saying: “This is a good trading performance, given unhelpful weather and consumer backdrops.
“While interim profits will be adversely impacted by the front-end loading of overhead investment and Blacks’ operating loss, our full-year PBT forecast is unchanged.”
Sectors: Apparel, Finance, Footwear, Retail
Companies: JD Sports
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UK: JD Sports sales up but margins hit
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