JD Sports' UK & Ireland like-for-like sales rise 1.1%

Highlights

• Continued robust performance in core Sports fascias with gross margin ahead of expectations
• As anticipated, initial loss of £10.0 million in Blacks business from critical lack of stock and unsustainable cost base following acquisition from administration with vast majority of the loss incurred in the first three months
• The further reduction in operating profit has arisen principally from the phasing of earnings streams from new acquisitions and acquisitions made in the prior year together with duplicate and excess warehouse operating costs incurred in the transition to the centralised Kingsway warehouse which is now fully operational
• Blacks stabilising with stores fully restocked and central cost reorganisation programme ongoing
• European development of JD continues with 7 stores now open in France and 3 stores opened in the period in Spain
• Acquisitions of Tessuti and Originals in the period increase critical mass in Premium Male Fashion sector
• Like for like sales for the 26 week period in the UK and Ireland combined core retail segments increased by 1.1%:

Peter Cowgill, Executive Chairman, said: "I stated in April that the recent expansion activity in the Group, the relocation of distribution facilities and the resolution of the stock and property issues in the Blacks business would impact results in the short term. As expected, this has proven to be the case but it does provide the Group with a very positive platform for future development.

"I am pleased to report that our primary JD fascia remains robust and we have increased our overseas presence with the intention of producing long term value for shareholders. The robust trading in the Sports Fascias has continued since the period end although trading in the Fashion Fascias has been more difficult. Our Outdoor business continues to stabilise and aims to break even in the second half before any restructuring charges.

"As ever, the Group result for the full year remains very dependent on the sales and margin performance in December and January. Notwithstanding the economic pressure on margin and the general increase in taxation and other levies across Europe, the Board believes that the Group is well positioned to deliver results that are within the range of current expectations."

Established in 1981 with a single store in Bury, in the North West of England, JD Sports Fashion Plc is the leading retailer and distributor of branded sportswear and fashionwear.

JD Sports