JD strips out World Cup effect
FASHION and sportswear empire JD Sports has failed to cash in on the England football team's World Cup success because its stores sold out of replica strip before the tournament started.
Replica kit accounts for only 0.25% of turnover - less than £1m - and the chain decided not to order any extra shirts for the World Cup. The company claimed it did not need to pander to patriotic fans in a year which saw pre-tax profit rise by 22% to £20.07m on a similar increase in turnover to £245.6m. Like-for-like sales growth was 3.1% ahead and gross margins were slightly higher, while 29 new stores boosted turnover.
Chairman John Wardle said like-for-likes since the year-end were running at 3.2%. He said the post-year-end acquisition of the sport and fashion division of Blacks Leisure Group was a 'landmark event in the history of JD Sports' and integration was progressing well.
Operating profits from the Blacks stores are a measly 2.4% of turnover in contrast to JD's 8.3%. Wardle said: 'Total sales in the three weeks since effective control of the division on 21 May have increased by 3% and like-for-like sales by 1.2%.'
Earnings per share jumped 21.4% to 29.61p and a final dividend of 5.2p brings the total payout for the year ended 31 March to 7.8p, up 13%.
