Forex trading store

The success of clothing aimed at young buyers boosted profits at JD Sports by 26 per cent last year, but the sports retailer warned that tough economic conditions could still deter customers.

Profits swelled to £67.4 million for the year to the end of January 2010, the sixth consecutive year of growth which largely due to the strong performance of its fashion brands focused at the teen to mid-twenties age group.

The company, which operates stores under the JD Sports, Size?, Bank and Scotts brands, said it would lift its final dividend to shareholders by 65 per cent to 14.7p per share.

“Such sustained performance in the face of less than favourable economic conditions and exchange rates, reflects the strength and uniqueness of our brand and fascia offers as well as the strength of our management teams,” said executive chairman Peter Cowgill.

Despite weathering the recession, the retailer remained cautious. It said: “We recognise the increasing challenges of strong comparatives and the current economic and fiscal threats to consumers’ expenditure.”

JD Sports saw a £98.9 million increase in revenue for last year, half of which came from the purchase of new businesses, with like-for-like revenue up 2.5 per cent.

The retailer made several acquisitions in 2009, including the Canterbury rugby brand for £6.67 million, Chausport, a small French trainer retailer and Kooga Rugby, which supplies kit to rugby clubs.

However, margins remained static at 49 per cent, which JD Sports said was due to weaker performance by acquired stores and its distribution business.

Shares in JD Sports surged by 6.5p at the opening of the market, to 747.5p per share.

The company’s share price has risen by 75 per cent over the past year.