JD Sports ploughs through the snow to raise profit hopes

JD Sports issued a weatherproof trading update showing that its customers, youths who like to look sporty even when not playing sport, hit the stores over Christmas despite the snow.

In the five weeks to January 1, sales were up 2.5%, on top of a 6.6% increase in the same period last year.

JD says profit for 2011, estimated by the City at
£75 million, should "exceed current market expectations".

Mark Photiades at Singer Capital Markets said: "The business has been largely unaffected by the adverse weather.

"We continue to believe that JD is an extremely well-managed business with significant growth opportunities, although at current levels the shares look fairly valued."

JD competes most directly with Sports Direct, but has a bigger presence on the high street.

JJB Sports, a one-time rival, is now focusing on being "serious about sport" rather than just selling leisurewear. JJB is, in any case, struggling to survive.

JD chairman Peter Cowgill said trading was "pleasing".

"I am particularly grateful to all our staff who by their endeavour and commitment ensured that we were largely unaffected by the difficult weather."

Other retailers, notably Next, have warned that soaring cotton costs will mean it is forced to increase the price of clothes this year. JD's kit tends to be based on more man-made fibres.

"They are more affected by the oil price than the cotton price," said one analyst.

The shares gained 20.05p to 885.55p.