JD SPORTS has posted record results despite the UK’s high street crisis, and the sports retailer is looking abroad for further growth opportunities.
The group reported a 49.2 per cent increase in annual revenue to £4.7 billion for the 52 weeks to February 2, coming in at the higher end of market expectations. Profit before tax was up 15.4% to £339.9 million.
It showed it was still susceptible to seasonal influence, however, as the UK heatwave last year hit sales in its outdoors business, and this was partly blamed for a loss of £4.3m there.
It flagged the positive impact of its “multi-brand, multi-channel” offer on its rising revenue and said its profit margin underlined the boost to global reach from its acquisition of Finish Line in the US.
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Europe and Asia are also part of its expansion plans.
Richard Lim, Retail Economics’ chief executive, said the results “show that standing out in a crowded market with exclusive products, a unique proposition and placing the experiences at the heart of the store is a winning formula in today’s digital age”.
He said: “Investment in the retail theatre in concert with digital integration has propelled the retailer to an enviable market position, translating into healthy financials.
“Despite the challenging conditions on the high street, retailers who continue to thrive are those that have embraced change, invested in digital and listened to their customers to keep products fresh and desirable.”
Ian Forrest, investment research analyst at the Share Centre said the firm “defied gloom in the sector”. David Madden, of CMC Markets UK, said: “JD Sports didn’t engage in short-term ‘discounting unnecessarily’ and that stood to the firm in terms of gross margin."
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JD Sports said it was not immune to the challenges facing the UK retail sector, but that its British and Irish business had delivered a rise in sales and profitability.
It added: "This has been a particularly weather-challenged year for our outdoor businesses."
The results revealed that the company paid just £1.5m for Pretty Green, the clothing brand founded by Oasis frontman Liam Gallagher, along with its website and its flagship Manchester store.
In the US, the first five JD stores were opened, including four conversions of existing Finish Line stores.
Peter Cowgill JD executive chairman, said "we are pleased with the continued underlying positive performance of the group and are excited by the major developments ahead".
Mr Cowgill added: "We believe that our acquisition of the Finish Line business in the United States, the largest market for sport lifestyle footwear and apparel and the home to many of the global sportswear brands, will have positive consequences for our long-term brand engagement whilst significantly extending the group's global reach.
"We maintain our belief that Finish Line is capable of delivering improved levels of profitability."
Shares were up 8.4% at 576.6p.
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