Despite posting pre-tax profits of £78.6 million for 2010, a 28 per cent increase on the previous year, JD Sports says it remains cautious in its outlook for 2011.
Total revenue last year increased by 14.8 per cent to £883.7 million for the retailer that also owns brands such as Canterbury and KooGa, and recently made a bid for rival JJB Sports.
“The year ended January 29, 2011 has been the seventh successive year of good progress in revenue and profitability for the group,” says Peter Cowgill, JD’s executive chairman.
“Such sustained performance continues to reflect the strength of our brand and fascia offers, as well as the strength of our management teams.
“Our very strong cash position has also allowed us to continue to invest in brands, our store portfolio and new businesses during the year and since the year end.
“But following successive years of record results for the group, the retail environment has recently been significantly impacted by adverse fiscal changes in addition to the multiple current economic pressures.”
Cowgill went onto say that the strength of the JD offering gives potential for further replication internationally, albeit in Europe initially, adding: “We see this as a key opportunity wherever brands recognise our strength in developing brands and maintaining their prestige.
“We started to exploit this opportunity when we acquired the French retailer Chausport in May 2009 and we have no doubt that the acquisition has enhanced our visibility and credibility as an overseas investor.”
During 2010 there was a net increase of six stores in the UK and Ireland JD and Size? portfolios, with 21 new stores offset by 15 closures.
JD also said that its new 866,250 sq ft warehouse in Rochdale will be fully operational in the first quarter of 2012.
