The Investment Column: John David Sports
Wednesday 08 December 1999
Those problems have been addressed and the signs of recuperation were visible in yesterday's half-year figures. Profits were up by 13 per cent to pounds 6.7m while like-for-like sales rose by 3.8 per cent. Heavier promotional spending sent same-store sales more than 5 per cent higher.
JD operates at the fashion end of the sports market, concentrating on the clothing and footwear that sports enthusiasts wear on the terraces rather than the kit they wear on the pitch. It's a riskier area because fashions can change quickly. But it also means that JD is not competing head on with sportswear leader JJB Sports, which stocks more mainstream gear.
Meanwhile, the sector's capacity problem is being addressed. JD will open around 10 stores this year, bringing the total to around 140. JJB is opening more out-of-town stores but many of these will devote a lot of space to entertainment areas selling basketball hoops and football nets.
Sector consolidation should take further pressure off the capacity issue. Still, much rides on the likes of Nike, Adidas and Reebok continuing their lavish promotional spending.
On Peel Hunt's full-year forecast of pounds 10.8m, the shares trade on a forward multiple of 10. That seems good value, though JJB, which commands a slight premium to JD, might be a less risky bet in the sector now shrugging off the high street's woes.
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- 2 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 4 When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- 5 Terror threat level raised to severe as PM warns Isis risk could last for decades
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Terror threat level raised to severe as PM warns Isis risk could last for decades
Isis 'A Message in Blood' video shows beheading of Kurdish man in Iraq
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
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