JD Sports Fashion Plc Trading Statement (2182V)
January 10 2013 - 1:00AM
UK Regulatory
TIDMJD.
RNS Number : 2182V
JD Sports Fashion Plc
10 January 2013
10 January 2013
JD SPORTS FASHION PLC
CHRISTMAS TRADING STATEMENT
JD Sports Fashion Plc (the 'Group'), the leading retailer and
distributor of branded sportswear, fashionwear and outdoor clothing
and equipment, today announces an update on performance following
the Christmas trading period.
Highlights
-- Another record Christmas trading period for our core UK and
Ireland Sports Fascias in which like for like sales for the seven
week period ended 5 January were up 3.2%.
-- Margin in the core UK and Ireland Sports and Fashion Fascias
has strengthened and is now close to last year's levels
cumulatively.
-- Earnings still within the range of market expectations after first year losses in Blacks.
We are pleased to report that trading in our main business, the
core UK and Ireland JD Sports Fascias, has remained very robust
overall through the Christmas period with like for like sales for
the seven week period ended 5 January 2013 up 3.2% and margin for
the year to date has improved to close to the prior year's level.
After 49 weeks cumulative like for like sales for these fascias are
up 2.4%. This is expected to result in the headline earnings of the
Sports Fascias marginally exceeding those of last year even after
the costs of consolidating our warehousing in Rochdale. We remain
satisfied that prospects for profitable development of both our
core UK and Ireland and our international Sports Fascias remain
very positive.
The core Fashion Fascias (Bank and Scotts), which represent a
relatively small share of group sales, saw like for like sales in
the same seven week period decline by 7.9% (49 weeks -3.9%). Margin
for the year to date has also been maintained close to prior year
level and Bank will now only breakeven in the year. Management is
now very focussed on improving the performance in this
business.
Having acquired Blacks and Millets out of administration only 12
months ago, the rationalisation programme is now firmly underway.
Whilst the performance in the Outdoor Fascias has been
disappointing in the Christmas period, this was the result of the
proposition bought into by the previous management team. All the
key players in that team have been replaced very recently. However,
due to purchase order lead times, there will be some delay before
the full benefits of this will be realised. We will of course be
concentrating on delivering a substantial improvement in trading
throughout 2013. The size and fascia and location structure of the
store portfolio continues to be optimised as performance is
monitored and lease negotiations progress. There are currently 176
stores still in the portfolio. The seven full store refurbishments
carried out to date have been well received by key brands and have
produced encouraging results overall. The outlook for sales
improvement should now be positive instore and online. Next year
will also see the benefit of cost reductions in various areas of
the business and we anticipate that losses will reduce
substantially as the new year progresses.
After factoring in the significant level of losses in Outdoor,
which the Board does not expect to recur, the group's year end
results are likely to be towards the lower end of current market
expectations for headline profit before tax and exceptional items
which is currently GBP60 million.
Peter Cowgill, Executive Chairman, commented: "Christmas 2012
has seen another very robust performance from our core Sports
Fascias. Both international development in the Sports Fascias and
multichannel development throughout the Group represent significant
continuing growth opportunities. In addition, whilst the
performance of Outdoor has been disappointing, we remain confident
that this business will produce future returns. As evidenced by
results throughout recent years of considerable change, the core of
our retail group remains very strong. Trading in recent weeks has
been the strongest we have seen for some time."
The Group will make its Preliminary Results Announcement for the
53 weeks ending 2 February 2013 on 17 April 2013.
Enquiries:
JD Sports Fashion Plc Tel: 0161 767 1620
Peter Cowgill, Executive Chairman
Barry Bown, Chief Executive
Brian Small, Finance Director
MHP Communications Tel: 0203 128 8100
Andrew Jaques
Barnaby Fry
Ian Payne
Nick Hayns
This information is provided by RNS
The company news service from the London Stock Exchange
END
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