England fans help JD Sports profits

Jun 10 2010 by The Journal

DEMAND for World Cup merchandise has boosted retail chain JD Sports Fashion which has notched another strong set of sales figures.

The group said like-for-like sales in its sports shops rose 5.1% on a year earlier between January 31 and last weekend, compared with the 3% growth reported during the first 10 weeks of the trading period.

It said it benefited from World Cup euphoria as fans snapped up replica shirts and accessories ahead of the tournament, which starts on Friday.

The firm has been one of the retail sector’s strongest performers in the recession and is due to be rewarded with promotion to the FTSE 250 Index when the market’s latest reshuffle takes place on June 18.

The sports performance was accompanied by improved trading in the company’s fashion division, which consists of the chains Scotts and Bank. Like-for-like sales in the division were down 1.2% compared with the 3.5% decline reported earlier in the trading period.

Bank, which sells branded items aimed at teenagers and those in their twenties, showed 0.3% growth over the 18-week period. Scotts, JD’s other outlet in this division, sells branded fashion to younger men and has 38 stores mainly in the North and Midlands. It showed a reduced sales decline of 4.4%.

Singer Capital Markets increased its forecast for profits in the year to January 30 by 1% to £72.5m from £71.5m previously.

The group embarked on an overseas buying spree last year, following up the acquisition of Chausport, a sports shoe retailer in France, by snapping up rugby brand Canterbury.