|Master Investor Magazine
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The price of shares in FTSE 100 retailer JD Sports Fashion (LON:JD.) jumped 7.94% to 682.80p (as of 13:55 BST) after revenues for the half year to 3rd August climbed by 47%. Pre-tax profits for the period were up by 6.5% despite substantial exceptional costs that were primarily linked to the Go Outside business.
Executive chairman Peter Cowgill commented: “I am very pleased to report that this has been another period of significant progress for the Group with revenue growing by 47% to £2,721.2 million (2018: £1,846.3 million) and the headline profit before tax and exceptional items increasing by a further 30% to £158.6 million (2018: £121.9 million).
“Against a backdrop of widely reported retail challenges in the UK, it is extremely encouraging that JD has delivered like for like sales growth of more than 10% with an improved conversion reflecting consumers’ increasingly positive reaction to our elevated multichannel proposition where a unique and constantly evolving sports and fashion premium brand offer is presented in a vibrant retail theatre with innovative digital technology. JD also continues to gain momentum in Europe with a further double digit increase in total like for like sales and a net increase of 23 stores in the period.
“We are pleased by the continued positive trends to date in the second half in Sports Fashion whilst recognising the tougher comparatives ahead.
“Notwithstanding the ongoing uncertainty with regards to Brexit, the Board is confident that, without the impact from the transition to IFRS 16, the Group would have been on track to deliver headline profit before tax for the full year at the top end of market expectations which currently range from £402 million to £424 million. However, after adjusting for the impact of the transition to IFRS 16, we would expect to deliver results at the mid-point of expectations. We remain encouraged by our prospects for further growth”.