Contrasting with the bleak situation at JJB Sports and at the other major British sports retail group, Blacks Leisure, JD Sports Fashion reported an 8.4 percent increase in revenues to £324.0 million (€357.1m-$525.8m) for the six months ended Aug. 1. Net income grew by 12.8 percent to £6.9 million (€7.6m-$11.2m). Comparable sales ticked up by 0.7 percent, broken down into gains of 0.3 percent for its sports stores and 3.1 percent for its fashion stores.
The gross profit margin dipped slightly by 0.2 percentage points to 48.0 percent because of lower margins at Chausport, the recently acquired athletic footwear chain in France. The operating profit increased by 10.1 percent to £14.6 million (€16.1m-$23.7m), while pre-tax profit rose by 11.1 percent to £10.1 million (€11.1m-$16.4m).
For the sports retail division alone, sales rose by 7.0 percent to £270.0 million (€297.6m-$437.9m). The operating profit before exceptional items was up by 6.2 percent to £17.2 million (€19.0m-$27.9m). JD spent £4.5 million (€5.0m-$7.3m) refurbishing 12 stores in the U.K., with another nine or so planned by the end of the year. This program will slow down in 2010.
The wholesale division, comprising Topgrade, Nicholas Deakins and the new rugby businesses, Kooga and Canterbury, had a loss for the six months, attributed to marketing costs for the February launch of getthelabel.com, part of Topgrade. Canterbury was acquired during the second half.
In the six weeks to Sept. 12, comparable store sales were up by 0.8 percent, with growth of 1.3 percent in sports retail and fashion falling by 2.4 percent. The company noted that while October and November 2008 were weak, making this year’s comparisons easier, the consumer climate is still challenging.
At the end of the first half, JD had 343 sports stores, down from 345 at the end of January, having opened five and closed seven.
