JD Sports defies weak UK high street with profit rise

Credit: REUTERS/Neil Hall

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LONDON, Sept 10 (Reuters) - JD Sports JD.L, Britain's biggest sportswear retailer, on Tuesday reported higher first-half pretax profit, helped by more demand for gym apparel and premium branded fashion.

The owner of Footpatrol and Cloggs said pretax profit rose 6.6% to 129.9 million pounds ($160 million) for the six months to August 3.

JD has successfully targeted younger consumers who are driving the trend for athleisure, where sports clothes have become more acceptable at work, school and social occasions.

The company, which acquired rival Footasylum in April, reported a 47% rise in group revenue to 2.72 billion pounds, with like-for-like growth in its global sports fashion businesses and growth of more than 10% in its main UK and Ireland fascias.

"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%," Executive Chairman Peter Cowgill said.

JD Sports' focus on athleisure has helped it outperform a struggling British retail sector, reflecting more people shopping online, higher costs and weakening consumer spending.

Cowgill said "notwithstanding the ongoing uncertainty with regards to Brexit", the company was confident it was 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 pounds.

However, the rise would be constrained by a change in accounting standards, which meant forecast profit at the mid-point of expectations.

($1 = 0.8104 pounds)

(Reporting by Noor Zainab Hussain in Bengaluru and Paul Sandle in London, editing by James Davey)

((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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