UK retailer JD Sports Fashion revenue increases 19.9%

16 April 2012 (Last Updated April 16th, 2012 02:00)

UK-based sports fashion retailer JD Sports Fashion has reported a 19.9% growth in revenue to almost £1.06bn in fiscal 2012, compared to 0.88bn in the previous fiscal year.

UK-based sports fashion retailer JD Sports Fashion has reported a 19.9% growth in revenue to almost £1.06bn in fiscal 2012, compared to £0.88bn in the previous fiscal year.

Operating profit before exceptional items decreased 4.3% to £76.46m in the 52-week period ended 28 January, compared to £79.92m in the same period a year earlier.

During the same period, profit before tax and exceptional items declined 6.9% to £75.95m from £81.56m in the year ago period.

The company said despite a loss of £2.2m from the newly acquired Blacks business, the group's profit before tax and exceptionals exceeded consensus market expectations.

The group's gross margin fell marginally from 49.5% to 49.2% due to the impact of the acquired businesses.

Gross margin in the like for like businesses, excluding the impact of acquired businesses, increased 0.2% to 49.7%.

JD Sports' profit before tax slipped 14.2% to £67.4m in the fiscal 2012, compared to £78.62m in the previous fiscal year.

Sport Retail division revenue totalled £774.61m in the period to 28 January 2012, up from £665.93m in the year earlier period.

During the same period, Fashion Retail revenue grew to £151.64m from £133.94m, while and Outdoor Retail revenue totalled £5.87m.

The company said overall gross like-for-like sales for the period to 28 January 2012 in the UK and Ireland combined core retail segments rose 0.6%.

In the 52-week period, operating profit before exceptional items of Sport Retail and Fashion Retail totalled £74.30m and £3.30m, respectively.

Two JD stores were opened in France during the year and the first JD store in Spain was opened in late March 2012.

The firm said the new centralised warehouse for the group's UK retail operations will be fully operational by summer 2012.

JD Sports executive chairman Peter Cowgill said during the period, the retailer has invested significantly in brands, businesses and infrastructure to strengthen the platform for future development of the group.

"Whilst we expect some improvement in consumer confidence from the forthcoming international sporting events, we remain cautious," Cowgill said.

As of 28 January 2012, the company operated 503 stores, with 1.96 million ft² selling space.