JD Sports owners report 103% increase in profits

Apr 16 2008 by Peter McCusker, The Journal

THE owner of JD Sports rose above the high street gloom to post a doubling in annual profits.

John David Group said pre-tax profits lifted 103% to £35m in the 53 weeks to February 2, helped by an 11% rise in like-for-like sales and an improvement in margins.

However, JD cooled City expectations for the year ahead saying the current economic climate and outlook required a “note of prudence” and that it was right to be cautious about the extent of future growth in earnings.

The company has 345 sports shops branded JD and Size, while there are 87 fashion units trading as Scotts and Bank.

John David said its strategy seen over the past four years of eliminating underperforming stores and reducing excess stock levels had boosted the sports business. “The performance of the buying, merchandising and own brand departments has been excellent,” it added.

JD Sports is much less reliant on replica football kit sales – a good position to be in after the failure of the home nations to qualify for this summer’s Euro 2008 championships

The group opened 13 new sports stores and refurbished another 28 in the year, with the programme set to continue through most of 2008 and “representing the most substantial refurbishment programme” the group has ever undertaken.