UK retailer JD Sports saw its operating profits plunge 20 per cent in this year’s results which were announced today, due to losses from its Blacks acquisition.
Its outdoor fascias division, which includes the Blacks and Millets stores purchased in January 2012, posted £14.9m of operating losses for the year ended 2 February 2013.
However the company’s core sports products performed better, providing an additional £4.7m of operating profits to support JD Sports’ planned expansion in the European market.
Revenues rose 18.8 per cent this year, up to £1.26bn from £1.06bn.
“The core sports fascias in the UK continue to produce excellent results and provide the group with a very solid foundation for ongoing profitability and cash generation,” said executive chairman Peter Cowgill.
“We are pleased overall with the start that we have made to the new year. A very considerable amount of reorganisation in both outdoor retail and our warehousing and distribution operations is now behind us and this should benefit trading in the balance of the year.”