JD Sports H1 revenues increase 21 percent

JD Sports Fashion revenues improved 21 percent during the 26 weeks ended August 1, 2015 to 809.9 million pounds (1,242.5 million dollars). As anticipated by the company, like for like sales across all Group fascias, including those in Europe, increased by more than 10 percent.

Commenting on the first half interim results, Peter Cowgill, Executive Chairman, said, “I am delighted to report record results for the first half. Our principal sports fashion fascias continue to perform strongly with like for like sales growth in excess of 10 percent which, when measured against particularly strong and challenging comparatives, is a very pleasing performance.”

Financial highlights of the first half

Total gross margin of 47.4 percent was 0.5 percent lower than the prior year driven by a lower margin in JD’s euro denominated business. The overall margin improved slightly in outdoor but progress was limited by the need to clear Autumn/Winter stocks in the first quarter of the year. Operating profit before exceptional items for the period increased by 80 percent to 47.6 million pounds (73 million dollars) following an exceptional performance in sports fashion fascias and an encouraging reduction in losses in outdoor.

Sports fashion had an exceptional first half with operating profits before exceptional items increasing by 62 percent.

In outdoor, the total operating losses before exceptional items reduced to 4.5 million pounds (6.9 million dollars). The board proposes paying an interim dividend of 1.20p per ordinary share, an increase of 4.3 percent. The adjusted earnings per ordinary share before exceptional items increased by 81 percent and the basic earnings per ordinary share increased by 88 percent during the period under review.