* First-half pretax profit up 6.6%
* Shares rise 5.8%, topping FTSE index
* Peel Hunt upgrades target price on "stellar" performance
(Recasts, adds quotes, background and further reaction)
By Noor Zainab Hussain and Paul Sandle
LONDON, Sept 10 (Reuters) - Britain's biggest sportswear
retailer JD Sports made light of the UK's retail sector
woes on Tuesday as its gym clothing and premium-branded fashion
helped it to a profit rise that propelled its shares to the top
of the FTSE leaderboard.
JD has successfully targeted younger consumers who are
driving the trend for so-called athleisure as sports clothing
becomes more acceptable in all walks of life. It sells premium
ranges from the likes of Nike and Adidas,
often using exclusive products to set itself apart from rivals.
"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%," said Executive
Chairman Peter Cowgill.
He told Reuters that U.S. brand Supply & Demand is proving
popular and The North Face clothing always performs well in the
winter months.
"There is a lot of competition, but the scenario is that we
have to stay ahead in terms of selection of product ranges that
are appropriate for the targeted consumer," he said.
Shares in the group rose 5.8% in morning trade to 663 pence,
topping the FTSE 100 index of leading British companies.
Analysts at broker Peel Hunt upgraded their target price to
700 pence, saying JD's performance in the period had been
"nothing short of stellar".
"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.
CONFIDENT
Though uncertainty over Britain's planned departure from the
European Union continues to weigh on the retail sector, Cowgill
said that JD is confident of achieving full-year market
expectations for pretax profit, which currently range from 402
million pounds ($494 million) to 424 million pounds.
He said it would have set its sights on the top end of
expectations but for an accounting change that is likely to
restrict profit to the mid-point of the range.
Founded in 1981 with a single store in the North West of
England, JD now has more than 2,400 stores across markets in
Europe, Asia Pacific and the United States.
Cowgill said he was "very pleased and satisfied with
progress" at U.S. chain Finish Line, where it is closing some
underperforming stores, extending clothing ranges and working to
improve margins.
It achieved like-for-like sales growth of 5% across the
Finish Line branded stores and website, which Shore Capital
analysts said bodes well for the future.
JD's acquisition of Footasylum is under review by the
competition regulator in Britain, so will operate separately
until the process is completed, the company said.
The group said it is accelerating the opening of a new
European warehouse in Belgium to cope with any Brexit disruption
risks.
It had always expected to need a European distribution
centre sometime after 2021, it said, but is now securing a site
for early 2020 with sufficient capacity to process launch
product for its key footwear brands.
($1 = 0.8104 pounds)
(Editing by Keith Weir and David Goodman)
