JD Sports weathers high street storm with 15 per cent sales growth

Retailer said decision not to cut prices in reaction to challenging market had paid off

JD Sports has reported strong sales and improved growth over the past year, and said results were helped by a “consistently positive” performance over the Christmas period, in contrast with the majority of UK retailers.

The company posted a 15 per cent increase in total sales (including newly opened shops) in the 48 weeks to 5 January, across its global sports fashion business. Like-for-like sales over the same period rose more than 5 per cent.

The group said profit margins stayed the same as the previous year, due to the firm’s policy “not to enter into short-term reactive discounting unnecessarily”.

“Given the well-publicised challenges within the wider UK retail market, we are pleased with this trading result which further demonstrates the robust foundations of our dynamic multibrand multichannel proposition,” JD said in a statement to the London Stock Exchange on Monday.

The company opened its first five US stores during the second half of 2018 and said that while it is “too early to draw any conclusions” from performance in the US, the firm is “encouraged” by progress so far.

The group began its Stateside expansion with the $558m (£435m) purchase of US retailer Finish Line in March last year.

Peter Cowgill, executive chairman, said: “I am pleased with the continued progress of the group both in terms of our performance in existing markets and the recent positive developments in the United States.

“We are confident that domestically and internationally, in stores and online, our unique and often exclusive sports fashion premium brand offer provides a solid foundation for future development.”

JD’s strong trading update follows a tranche of disappointing results from UK retailers last week.

Marks & Spencer and Debenhams reported declining sales over the festive period, while John Lewis warned its staff may not receive an annual bonus for the first time since 1953.

Shares in JD jumped 6.4 per cent in early trading.