Afternoon:
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Kevin the teenager is still splashing out, but rising unemployment among the young remains a worry for his favourite shopping group, JD Sports Fashion.
The retailer, which flogs trainers, hoodies and caps to 13-25 year olds at its JD, Size, Bank and Scotts stores, today posted a 14.5% jump in pre-tax profits to £14.2 million for the six months to 1 August.
But while JD says it is on track to meet City forecasts for the year, it warned that much depends on the Christmas trading period as the consumer environment deteriorates.
“We have to be aware of the economy: footfall is down,” executive chairman Peter Cowgill said. “We'll have to increase our market share.” Like-for-like sales were up 0.7% over the period, but Singer Capital Markets estimates this means sales were down about 1% in the final nine weeks. But comparisons are getting easier, with sales in the six weeks to September 0.8% higher than last year.
JD's rivals JJB and Sports Direct are under investigation by the Office of Fair Trading amid allegations of price fixing. Cowgill said: “It will distract from their main business focus, but we'll be concentrating on our own game.”
He said JD is still looking for acquisitions after buying France's Chausport and rugby kit makers Canterbury and Kooga this year. Kitbag, the online retailer owned by Findel, is rumoured to be a takeover target. JD has shifted its focus from sports gear to fashion, but still expects to get a boost from England's World Cup qualification.
