JD's growth quickens but Black's will take a year to fix

Sports fashion retailer JD Sports Fashion has seen an improvement in like-for-like sales growth but, as anticipated, gross margins remain under pressure.

LFL sales in the 19 weeks to June 9th were up 1.5% on the corresponding period of the previous year, which represents an improvement in the growth rate of 1.2% previously reported for the nine weeks to the end of March.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The group said it is getting to grips with Black's Leisure, the loss making retailer it acquired earlier this year. At the time of the acquisition the chain was suffering from a lack of stock, too many shops lumbered with high rents and a disproportionate cost base at head office, and these problems are unlikely to be completely addressed until next year, the group said.

The anticipated level of the operating loss in the Black's Leisure business in the current year is £10m with the potential for a further up to £5m charge for restructuring. The bulk of the operating loss in Blacks will occur in the first half of the financial year, which runs to the end of January.

Management confessed that it is difficult to offer an accurate assessment of the short term prospects for the Black's Leisure business, but the board continues to believe that Black's market position can be exploited profitably in the medium term.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.