JD Sports has surprised even itself by notching up a two-thirds increase in first-half profits to hit a new record, as it opened more stores and shoppers snapped up high-end trainers and athletic gear.
The sports retailer’s pre-tax profit before exceptional items jumped 66% to £77.4m in the six months to 30 July. Revenue rose 20% to £971m and sales at stores open a year or more rose 10%.
JD Sports was the biggest riser on the FTSE 250 on Tuesday morning, with its shares up 5.5% to £14.06.
Peter Cowgill, JD’s executive chairman, said: “This has been another period of excellent progress for the group with a record profit. Given that last year’s result was in itself a record for our group then to increase this by a further 66% has exceeded reasonable expectations. The favourable trends for athletic-inspired footwear and apparel in Europe have continued into this year.”
JD’s sales have boomed as sportswear has become more fashionable outside the gym and off the field of play. Brands such as Nike and Adidas have expanded their ranges of so-called “athleisure” with sales to women rising sharply and JD have targeted new products.
Operating profit at JD’s sports fashion stores jumped 53% to £79.9m. Cowgill said growth was unlikely to continue at such a rapid pace but that JD had plenty of opportunities in the UK and abroad. It opened 20 stores in Europe in the first half and said there were more to come in the rest of the year.
Cowgill attributed JD’s success to the money it has spent kitting out and maintaining its stores with an upmarket feel. It has piled on sales as its UK rival, Sports Direct, has missed out on the growth of athleisure sports fashion as leading brands have grown weary of its bargain-basement shops.
“The market for sports and fashion brands can change quickly and so we continue to invest in visual merchandising, retail theatre and creative marketing as we believe that it is JD’s market-leading standards in these areas that make it an attractive outlet to many brands,” Cowgill said.
Sports Direct, which is under pressure over working practices after a Guardian investigation, has announced a £300m investment programme to overhaul its stores in an effort to become the “Selfridges of sports retail”.
Losses halved to £2.25m at JD’s outdoor business, which includes Blacks and Millets.
