JD Sports Regulatory News (JD.)

11 Jan 2007 07:00

John David Group (The) PLC11 January 2007 11 January 2007 THE JOHN DAVID GROUP PLC CHRISTMAS TRADING STATEMENT Since The John David Group Plc (the 'Group') reported its interim results forthe 26 weeks ended 29 July 2006 on 28 September 2006, the Group has continued toenjoy strong trading driven by the performance of the core Sports Division. The Sports Division, (excluding those stores acquired from Allsports andconverted during the current year and the 14 airport stores acquired fromHargreaves in July 2006) has seen a like for like sales increase of 5.7% for the23 weeks to 6 January 2007 and of 5.0% for the 8 weeks to 6 January 2007 inwhich the prior year period comparatives were relatively strong (+6.0%).Cumulatively, for the 49 weeks to 6 January 2007, on this basis the SportsDivision like for like sales have improved by 4.5%. The Allsports stores havebenefited from the JD product offer and distribution service over Christmas toproduce results in line with management expectations. The Fashion Division like for like sales increase for the 23 week period to 6January 2007 was 5.9% but like for like sales declined 0.5% in the 8 weekChristmas period. Cumulatively for the 49 week period, like for like sales haveimproved by 4.2% but, in our view, the branded fashion retail sector isincreasingly competitive and consequently the results of this division remaindepressed although property disposals in the current period will help futureperformance. The Group like for like sales increase for the 23 week period to 6 January 2007was 5.7%, for the 8 week Christmas period was 4.5%, and cumulatively for the 49week period stands at 4.5%. The Group's gross margin improved in the first half against the equivalentperiod last year and a year on year gross margin improvement has also beenachieved in the second half aided by progress on own brand sales in the SportsDivision. Although we have continued to experience cost pressures with regard torents, rates, utility costs and minimum wage rates, we nevertheless expect thecombination of continuing progress on margin and like for like sales to resultin final headline earnings for the year ended 27 January 2007 being ahead ofcurrent market expectations. For the full year to 27 January 2007, there will be a further charge for one offnet costs and write offs connected with the store disposal programme. Thisprogramme remains ongoing but these costs have not been a significant drain oncash resources. Peter Cowgill, Executive Chairman, commented: "We are pleased with ourperformance over the Christmas period and the year to date and believe itdemonstrates that our retail proposition and operational strategy are continuingthe improvement in performance of the Group." The Group will make its Preliminary Results Announcement for the year ended 27January 2007 on 26 April 2007. Enquiries: The John David Group Plc Tel: 0161 767 1608Peter Cowgill, Executive ChairmanBarry Bown, Chief ExecutiveBrian Small, Finance Director Hogarth Partnership Limited Tel: 020 7357 9477Andrew JaquesBarnaby FryCharlie Field This information is provided by RNS The company news service from the London Stock Exchange