Interim Management Statement (2324F)
June 13 2012 - 1:00AM
UK Regulatory
TIDMJD.
RNS Number : 2324F
JD Sports Fashion Plc
13 June 2012
13 June 2012
JD Sports Fashion Plc
INTERIM MANAGEMENT STATEMENT
JD Sports Fashion Plc (the "Group"), the leading retailer and
distributor of branded sportswear, fashionwear and outdoor clothing
and equipmenttoday releases the following Interim Management
Statement for the period to 9 June 2012.
In the Preliminary Announcement of the Group's results for the
52 week period ended 28 January 2012, issued on 12 April 2012, the
Group reported like for like sales growth of 1.2% in the core UK
and Ireland fascias for the 9 weeks to 31 March 2012 (Sports
Fascias +1.0%; Fashion Fascias +2.3%).
Trading since then has continued to be in line with
expectations.
The cumulative like for like sales for the 19 weeks ended 9 June
2012 have improved marginally to +1.5% (Sports Fascias +1.2%;
Fashion Fascias +3.0%). As anticipated gross margin has continued
to be under pressure in an offer driven market. This margin
pressure and the additional overhead within the group to support
International Retail, Brands and Licensing and Multichannel
Development will as previously reported impact the core retail
results, particularly in the first half.
In the Preliminary Announcement we also announced that Blacks
had delivered an operating loss of GBP2.2 million in the three
weeks post acquisition to 28 January 2012, reflecting the lack of
stock in the business and the inheritance of an excessively large
and over rented store portfolio, together with a disproportionate
central cost which will not be fully eliminated until early in the
next financial year. We are presently continuing to address the
significant operating issues in turning round the business. The
anticipated level of the operating loss in the Blacks business in
the current year is GBP10 million with the potential for a further
up to GBP5 million charge for restructuring. The bulk of the
operating loss in Blacks will occur in the first half. Whilst the
business continues to restructure its store portfolio and operate
with legacy buying decisions, it is difficult to be more precise on
the short term outlook, but we remain of the view that Black's
market position can be exploited profitably in the medium term. Our
immediate priority is to significantly improve the customer
proposition.
The Board maintains its belief that the Group remains
exceptionally well positioned to take advantage of any
opportunities, both in the UK and internationally, with its retail
propositions, brand connections, financial resources and management
experience.
The Group expects to issue its Interim Results in mid
September.
Enquiries:
JD Sports Fashion Plc Tel: 0161 767 1000
Peter Cowgill, Executive Chairman
Barry Bown, Chief Executive
Brian Small, Finance Director
MHP Communications Tel: 0203 128 8100
Andrew Jaques
Barnaby Fry
Ian Payne
This information is provided by RNS
The company news service from the London Stock Exchange
END
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