JD Sports Boosted By Annual Profit Rise
Sportswear retailer JD Sports has bucked the market trend by announcing that annual profit will beat analysts’ estimates because discounting was avoided before Christmas.
The retailer delayed marking down merchandise until 26th December, enabling it to maintain profitability in the five weeks ended 3rd January, a company statement indicated.
Sales rose 2.8% at stores open at least a year in the period while pre-tax profit will be ‘marginally’ above estimates, the company said.
Like-for-like sales for the 48 weeks to 3rd January were also up 3.8%, with gross margin up marginally. The biggest sales rises came from the brand’s fashion products although sportswear also rose marginally.
The news is in stark contrast to the performances of JD Sports’ market rivals Sportsworld and JJB Sports, both of whose share value has dropped significantly in the wake of disappointing sales results.
In early December, JJB Sports Plc reported that 19-week same-outlet sales fell 8.9% at its stores and its seasonal sale had begun sooner than planned.
