Sportswear chain JD Sports Fashion bucked the Christmas retail gloom today with a bullish forecast of better-than-expected profits this year.
High street big names such as Next and Marks & Spencer have unveiled falling sales this week, but JD said like-for-like sales rose 2.8 per cent in the five weeks to January 5th.
The firm - one of the strongest retail performers in the current downturn - said it believed current market expectations on pre-tax profit would be “marginally exceeded” in the year to January 31st.
The performance is all the more impressive in a worsening economic climate since the firm also enjoyed a strong Christmas the previous year, with like-for-like sales up 9.6 per cent.
The group also refused to take part in the heavy price-slashing widespread across the high street until launching its sale on Boxing Day.
JD has fared better than rivals such as JJB Sports and Sports World owner Sports Direct because of its strong offering through fashion brands Scotts and Bank.
The fashion brands saw comparative sales rise 12.5 per cent over the festive period, far outstripping a 1 per cent increase for the sportswear shops.
The strength of Scotts and Banks means it has a reduced reliance on replica football kit sales - hit last year by England’s failure to qualify for the Euro 2008 football championships.
It has also the broadened the mix of products in its sports business over the past four years, while eliminating under-performing stores and reducing excess stock levels.
The company added that overall like-for-like sales in the 48 weeks to January 3rd had risen 3.8 per cent, with profit margins slightly higher than the previous year.
JD was founded in 1981 with one shop in Bury and expanded throughout the North and Midlands during the 1980s before opening its first store in Oxford Street in 1989. The group floated on the stock market in 1996 and now has more than 400 stores.
Agencies