JD Sports results send shares to new all-time high

JD Sport Fashion remained a beacon of growth in the troubled retail sector, as the sports chain reported double-digit sales and profit growth for the 52 weeks to 2 February.

Revenues mushroomed 49% to £4.7bn, boosted by a 33-week contribution of £957m from US acquisition Finish Line and £184m from Sports Zone in Iberia after it was bought at the end of the prior year. Excluding these additions and new store openings, like-for-like sales growth was up 5%, with sports-brand LFLs up 6% and store LFLs ahead 1%.

Profit before tax and exceptionals climbed 15.5% to £355.2m and adjusted earnings per share were up 13%, as total gross margin dipped to 47.5% from 48.4% the previous year due to currently lower margins at Finish Line and Sport Zone.

The headlines results were better than City analysts were expecting, with the average revenue forecast pointing to £4.56bn and EPS of 27.8p.

A final dividend lifted 5% to 1.44p will bring the total dividend to 1.71p per share, an increase of 4.9%.

Executive chairman Peter Cowgill, who is poised to complete another acquistion, of UK-based Footasylum, in coming weeks, was very pleased with the progress made in profit growth in the past four years, noting that it has increased by more than £250m or a compound annual growth rate of more than 37%.

"We firmly believe that the elevated and dynamic multibrand multichannel proposition of the core JD fascia, which enjoys the ongoing support of the key international brands, has the necessary agility to continue to exceed consumer expectations and prosper in an increasing number of international markets,” he said.

He was positive that the addition of Finish Line, operating in the largest global market for sport lifestyle footwear and apparel and with connections to large sportswear brands, “will have positive consequences for our long-term brand engagement” and reiterated his belief that profitability can be improved there.

Of recent training he said he was “pleased with the continued underlying positive performance of the group and are excited by the major developments ahead”, though no figures were given for recent trading due to the significance of Easter trading to the overall result and the later timing of the holiday this year.

JD shares shot up to 550p, a new all time high, in the first few minutes of trading on Tuesday.