JD Sports reports jump in pre-tax profit as sales up 10%

Retailer JD Sports said half-year sales had increased 10% with pre-tax profits almost doubling to £44.7m as the UK economy strengthened. However, it warned that government plans to introduce a “living wage” in April 2016 would harm future earnings.

Revenue was up 21% to £809m.

Executive chairman Peter Cowgill said the level of organic growth seen over the previous two years by the sports retailer “are unlikely to continue indefinitely, albeit the JD brand continues to strengthen and further opportunities prevail”.

“Our current successful exploitation of these favourable market conditions reflects investments that we have made over a number of years in developing our multi-channel retail proposition and driving improved buying, merchandising and retailing disciplines. We continue to invest heavily in these areas.”

"Given the demanding comparatives following two years of strong revenue growth, we are encouraged by the positive nature of the trading to date in the second half across our core fascias,” Cowgill said, although he declined to give an outlook on the second half given the impact of Christmas trading.