JD Sports sales get world cup lift

The group said like-for-like sales in its sports shops rose 5.1 per cent on a year earlier between January 31 and last weekend, compared with the three per cent growth reported during the first 10 weeks of the trading period.

It said it benefited from World Cup euphoria as fans snapped up replica shirts and accessories ahead of the tournament, which starts on Friday.

The firm has been one of the retail sector's strongest performers in the recession and is due to be rewarded with promotion to the FTSE 250 Index when the market's latest reshuffle takes place on June 18.

The sports performance was accompanied by improved trading in the company's fashion division, which consists of the chains Scotts and Bank. Like-for-like sales in the division were down 1.2 per cent compared with the 3.5 per cent decline reported earlier in the trading period.

Bank, which is mainly based in the North and Midlands and sells branded items aimed at teenagers and those in their twenties, showed 0.3 per cent growth over the 18 week period.

Scotts, JD's other outlet in this division, sells branded fashion to younger men and has 38 stores mainly in the North and Midlands. It showed a reduced sales decline of 4.4 per cent.

Shares opened more than one per cent higher following today's update.

Singer Capital Markets increased its forecast for profits in the year to January 30 by one per cent to 72.5m from 71.5m previously.

The group embarked on an overseas buying spree last year, following up the acquisition of Chausport, a sports shoe retailer in France, by snapping up rugby brands Canterbury and Canterbury of New Zealand as well as related distribution assets.

Freddie George, an analyst at Seymour Pierce stockbrokers, said: "The company has scope to develop its higher margin own label ranges, grow its internet offer and develop its wholesaling activities overseas and has the cashflow to make further acquisitions."