* First-half reported pretax profit rise 6.6%
* Company says sales in core UK market "extremely
encouraging"
* Shares rise 5%, topping FTSE index
(Adds shares, analyst reaction)
LONDON, Sept 10 (Reuters) - JD Sports, Britain's
biggest sportswear retailer, reported higher first-half pretax
profit on Tuesday, helped by more demand for gym clothing and
premium branded fashion.
JD has successfully targeted younger consumers who are
driving the trend for athleisure -- where sports clothes have
become more acceptable at work, school and for going out
socially.
The company, which acquired U.S. retailer Finish Line last
year and agreed to buy British rival Footasylum in April,
said pretax profit rose 6.6% to 129.9 million pounds ($160
million) for the six months to August 3.
The owner of the Footpatrol and Cloggs brands reported a 47%
rise in group revenue to 2.72 billion pounds.
"Against a backdrop of widely reported retail challenges in
the UK, it is extremely encouraging that JD has delivered like
for like sales growth of more than 10%," Executive Chairman
Peter Cowgill said.
Shares in the group rose 5% in early deals to 663 pence,
topping the FSTE 100 index of leading British companies.
Like-for-like sales in its global sports fashion businesses
rose 12%, it said, with growth of more than 10% in its main UK
and Ireland outlets.
Analysts at broker Peel Hunt upgraded their target price for
the stock to 700 pence, saying JD's performance in the period
had been "nothing short of stellar, especially in the core UK
market".
"JD's attractiveness to shoppers and suppliers (and
investors) is at an all-time high and we see little chance of
this changing", they said.
JD Sports' focus on athleisure has helped it outperform a
struggling British retail sector, reflecting more people
shopping online, higher costs and weakening consumer spending.
Cowgill said "notwithstanding the ongoing uncertainty with
regards to Brexit", the company was confident it was on track to
deliver headline profit before tax for the full year at the top
end of market expectations, which currently range from 402
million to 424 million pounds.
However, the rise would be constrained by a change in
accounting standards, which meant forecast profit at the
mid-point of expectations.
($1 = 0.8104 pounds)
(Reporting by Noor Zainab Hussain in Bengaluru and Paul Sandle
in London
Editing by James Davey/Keith Weir)