- JD Sports/Adidas
LONDON – Sales at sportswear shop JD Sports jumped by 40% in the first half of 2017, as the retailer enjoyed a record six months.
Revenue jumped 41% to £1.3 billion, the company said in a statement on Tuesday, and pre-tax profit rose 33% to £102.7 million.
The chain is benefiting from the current trend for “Athleisure” clothes – streetwear and fashion influenced by athletics and sporting styles. Think yoga pants, a Nike top, and the latest Adidas trainers.
Executive Chairman Peter Cowgill said the results show JD is able “to prosper in an increasingly competitive market for athletic inspired footwear and apparel.” New brands for sale added in the period include Calvin Klein and Tommy Hilfiger.
JD, which also owns trainer shop Size? and the Go Outdoors chain, opened 12 new shops in the UK and Ireland in the first half of 2017 and 23 new international stores. Excluding the impact of new store openings, in-store sales rose 3% in the period.
Cowgill says the second half the year is so far going as well as the first and told investors to expect full-year results “towards the upper end of market expectations.”
JD Sports’ shares jumped as much as 11% at the open in London and are still up over 9% after around 20 minutes of trade.
Nick Bubb, an independent retail analyst, says in an email on Tuesday morning: “The JD Sports share price has been under some pressure of late, with investors worried about Footlocker’s warning in the US of tougher times in the sportswear industry, so it was important that today’s interims cleared the air.
“3% like-for-like store sales growth in the core JD Sports business in the UK is not what investors are used to, even though the H1 comps were very tough, but strong Online growth and good growth in Europe helped to push overall sales up strongly and the City will be reassured by the upbeat message from the company today.”