Profits up as JD bucks trend
Sep 23 2009 by Iain Laing, The Journal
JD Sports Fashion has posted an 11% rise in profits as it continues to show a clean pair of heels to troubled rivals in the sportswear sector including that run by Newcastle United owner Mike Ashley.
The retail chain said profits in the six months to August 1 hit £10.1m following sales growth at JD Sports and its Bank fashion stores.
JD said the performance enabled it to continue with store refurbishments and to open five new sports stores and five more in its fashion estate. It recently acquired the rights to rugby brand Canterbury of New Zealand and made its first move overseas with the acquisition of retailer Chausport.
The company, which was founded in 1981 with one shop in Bury, has fared much better than its rivals, helped by its strong offering through fashion brands Scotts and Bank and its limited exposure to replica football kit sales.
It has also seen competitors JJB Sports and Mike Ashley’s Sports Direct International distracted by a number of non-trading issues.
Earlier this month it emerged that JJB blew the whistle to the Office of Fair Trading (OFT) on alleged cartel activity in the sports retail market.
JJB Sports and Sports World owner Sports Direct International are now being investigated by the Serious Fraud Office after a referral from the OFT.
The fraud investigation follows an acrimonious battle between Mr Ashley and JJB chairman Sir David Jones over a personal loan.
