JD Sports shares dive after warning
Tuesday 03 June 1997
The warning about trading accompanied news that profits for the year to 31 March had soared by 43 per cent to pounds 9.62m, which was ahead of the top range of analysts' expectations of pounds 9.4m.
However, John Wardle, chairman, said: "It has become apparent that a segment of the company's clothing offering is not selling well. Action has been taken to address this ... which will act as a brake on margins."
The warning comes amid growing demand for sports clothing, particularly among young people for football and other sports shirts. High-profile sports events like last year's Euro 96 soccer championship have helped lift demand and forced even conservative clothing retailers like Marks & Spencer to introduce sportswear lines.
JD Sports said sales in the 1996/97 year rose 56 per cent, with sales at stores open more than a year up 15 per cent. Sales in the second half of the year "returned to more modest levels" after Euro 96 and the Atlanta Olympic games had pushed up demand in the first six months.
Sales so far this financial year are up 25 per cent on the same period a year ago, mainly reflecting an increase in the number of stores. In 1996/96, the company opened 34 stores.
The cost of the rapid store opening programme impacted on operating profit margins, which fell from 12.4 to 11.1 per cent. The company also took an exceptional charge of pounds 650,000 to cover costs of damage to one of its stores in Manchester caused by the IRA bomb attack.
Diving in at the deep end is no excuse for shirking the style stakes
- 1 Why I'm on the brink of burning my Israeli passport
- 2 Comfortable in their own skin
- 3 Japanese plant experts produce 10,000 lettuce heads a day in LED-lit indoor farm
- 4 War is war: Why I stand with Israel
- 5 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
Israel-Gaza conflict: Death toll tops 125 after overnight raids as Operation Protective Edge continues
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Ian Thorpe gay: Olympic swimmer comes out in Parkinson interview
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: Pro-Palestinian demonstrators take to streets of London, Paris and New York in wave of protests
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...