Leisure retailer JD Sports reported a 16% jump in half-year profits today but warned of increased uncertainty in the run-up to Christmas.
Sales in the six months to 30 September leapt forward, boosted by the England football team’s successful World Cup qualifying campaign.
But the group, based in Heywood, Lancashire, said sales had begun to slip in the first weeks of the second half.
Milder weather in October pushed like-for-like growth down to 2% from 3% for the first half as a whole.
Chairman John Wardle added: “The events of September 11 in the US undoubtedly add a greater degree of uncertainty.”
Shares in the business fell 6% after the update, 17.5p to 271.5p, as investors reacted to the concern.
Wardle said, however, the group was well placed to deliver long-term growth after its strong first-half performance.
In the six months, 18 new stores helped turnover jump 18% to £118.3m, in turn fuelling a 16% rise in pre-tax profits to £10.9m.
JD Sports, which operates 155 stores, saw a surge in sales of England football kits following the 5-1 defeat of Germany on 1 September in particular, it said.
Analysts have pencilled in full-year pre-tax profits of £18.9m, up on last year’s figure of £16.5m.
Investors will receive an interim dividend of 2.6p, up from 2.3p last time.
EGi News 27/11/01
