JD Sports Fashion sees annual profit at lower end of forecasts

Sportswear and outdoor clothing and equipment retailer JD Sports Fashion said it expects full year pre-tax profit to be towards the lower end of current market expectations after losses at its outdoor business.

Market expectations for headline profit before tax and exceptional items is currently £60m.

Executive Chairman Peter Cowgill commented: "Christmas 2012 has seen another very robust performance from our core Sports Fascias."

The core UK and Ireland JD Sports Fascias reported a 3.2% rise in like for like sales for the seven week period ended January 5th 2013 while margins for the year improved from the previous year.

However outdoor endured a disappointing festive season. "This was the result of the proposition bought into by the previous management team. All the key players in that team have been replaced very recently," JD said in a company statement.

JD added that both international development in the Sports Fascias and multichannel development throughout the group represent significant continuing growth opportunities. It said whilst the performance of outdoor has been disappointing, it remains confident that this business will produce future returns.

JD said trading in recent weeks has been the strongest we have seen for some time.

CJ