JD Sports Sees Sales Up But Profit Down
Retailer JD Sports Fashion has seen a slight increase in UK and Ireland like-for-like sales for the first half of 2012, amid an 8% plunge in profit.
The company's like-for-like operating profit fell 8.2% to £14.9m, in the 26 weeks to July 28.
Meanwhile the firm reported a lift in UK and Ireland like-for-like sales of 1.1%.
The mixed results amid the wider economic downturn were hampered by the acquisition of troubled retailer Blacks Leisure.
In a statement, chief executive Peter Cowgill said: "The performance of our fashion fascias has been disappointing and their management teams acknowledge the need to enhance their product offers significantly.
"As anticipated, the Blacks business suffered from supply discontinuity following administration and significant losses were incurred in the early months."
In January, JD Sports bought troubled retailer Blacks Leisure from administrators in a £20m deal.
JD said the loss in outdoor clothing retailer Blacks was £10m in the period, due to problems with a lack of stock and a high cost base.
But the firm added that it was now stabilising and aimed to break even in the second half.
The company had been expected to bid for struggling competitor JJB Sports, which is expected to file for administration shortly.
However, in releasing H1 figures JD Sports hinted that it would not bid.
It said: "Management are presently of the opinion that they have a full complement of brands for development in the retail fascias."
With stronger performance in the sport sector, JD said it hoped to further its international presence.
It also said the Christmas run-up period will be important to full-year results and chosen business strategy.
Mr Cowgill said: "We recognise, however, that the full benefit has still to be proven during the key Christmas period."