 reported record profits on Tuesday, with a boost to fashion fitness wear sending shares up nearly 10 percent.){kind=link}
Sports store JD Sports (LON:JD) reported record profits on Tuesday, with a boost to fashion fitness wear sending shares up nearly 10 percent.
Operating profit at the group rose 55 percent in the year to January 28th, with revenue hitting £2,378,694. Profit before tax saw an impressive 81 percent increase, marking record annual figures for the company.
The group’s other chains, outdoor stores Millets and Blacks, both made money for the first time since their acquisition by JD. Like-for-like sales, which strip out the impact of new stores opening, grew 10 percent over the year.
Peter Cowgill, Executive Chairman, called the year a “period of very significant progress for the group”, adding that it was an “outstanding performance and provides the group with a robust platform for further development”.
However, he warned on the effects of an uncertain economy going forward, adding that “we must recognise that there are external influences which may impact the latter part of the year, notably inflationary pressures arising from Brexit”.
His warnings comes amongst many recently made by the CEOs of high street stores, as consumers begin to cut back on spending. Industry figures released on Tuesday showed the third consecutive month of falling sales in March.
Arguably such strong results were slightly unexpected, with the group having been subject to significant controversy over the course of the year.
A Channel 4 undercover investigation in December showed workers saying conditions at its Kingsway distribution centre in Rochdale were “worse than a prison”, sparking an independent investigation undertaken Deloitte in order to review the allegations.
Shares in JD Sports are currently up 10.45 percent at 449.11 (1035GMT).