JD Sports Fashion doubles interim profits

Despite disappointing results in the fashion division, sportswear retailer JD Sports Fashion more than doubled first-half profits year-on-year thanks to strong performances across sports and outdoor clothing.

Group revenue was up 27% to £721.5m in the six months to 2 August, driven by strong performances across the sports and outdoor clothing arms, which both registered a like-for-like store growth of over 10%.

“I am pleased with the positive progress in our outdoor business, particularly since the move to our central facilities was only completed in July last year,” said executive chairman Peter Cowgill.

“Fashion continues to disappoint, albeit trading more positively in the second quarter.

"Our sports operations continue to provide the engine for profit growth and cash generation in the group and will therefore continue to be the primary focus of investment.”

Positive results from the group’s sports-focused stores in Europe and a significant reduction in losses in the outdoor department saw the group operating profit (before exceptional items) for the period rise from £10.4m in the first half of 2013 to £21m.

In a statement JD said that its reported profit before tax in the period rose 170% to £16.5m, including increasingly expensive property leases as the main factor behind £3.5m of exceptional charges.

The sports retailer announced that it had increased its capital expenditure from £21.5m to £26.3m, with £6.4m dedicated to ongoing projects in IT and logistics to improve operational infrastructure.

Despite its “significant dependence" on Christmas trading, the group said it was well positioned to deliver results towards the upper end of current market expectations, with fashion traditionally enjoying a stronger second half and further improvement expected from outdoor.

Shares in the company were up 0.5% to 408p after the first half-hour of trading on Wednesday.