Accessories Amazon Asda Christmas Expansion & Franchise Fashion HR News High Street John Lewis London Marks & Spencer Media News Results Retail Retail and Consumer Industry Retail news Sainsbury's Store Tesco UK brand china consumer deal deals and rumours department department stores e-commerce electricals expansion fashion news food grocer group launch luxury morrisons my online online retail people profit property retail property retailer sale sales supermarket waitrose
JD loses £15m on Blacks business Wednesday, 13th June 2012
High street staple JD Sports has reported a 1.5 per cent sales rise but still expects to lose up to £15 million on its Blacks business this year.
In spite of a 1.2 per cent rise in sports sales and a three per cent increase in fashion trading in the 19 weeks to 9 June, the company has announced that margins are “under pressure” and the first half will be difficult.
JD said it is "continuing to address the significant operating issues in turning round" outdoor specialist Blacks. It predicts a £10m operating loss from the business in the current year, "with the potential for a further up to £5m charge for restructuring".
The £20 million deal to snap Blacks up in January erased £2.2 million off JD’s profits in the 52 weeks to 28 January as a result of a lack of stock and a heaving store portfolio.
JD said it is "exceptionally well positioned to take advantage of any opportunities, both in the UK and internationally, with its retail propositions, brand connections, financial resources and management experience".