Two of the outdoor and sports industry’s leading retailers have announced significant profit increases in recent weeks.
Both JD Sports and Sports Direct have seen their profits increase as confidence returns to the High Street.
JD Sports Fashion’s pre-tax profits before exceptionals jumped from £2.9m to £10m in its half year as earnings soared at its sports fascia.
However, JD Sports reported a ‘disappointing performance’ in the half at Blacks and Millets as it only cut losses from £10m to £8.9m. The company said its restructuring of Blacks and Millets is now ‘substantially complete’.
Sports Direct, the company that owns the Field & Trek chain and also outdoor brands Karrimor and Gelert, has announced profits up more than 23%.
Overall sales at Sports Direct were up 18.2 %in the quarter ending in July, to £613m, with profit up to £260m.
Michael Bennett of Pelican’s specialist leisure PR and communications team said: “These results make interesting reading. Widespread discounting has played a part in driving sales, particularly at JD Sports.
“However, many independents who are not able to exercise the buying power of the larger players are still struggling. The recovery may be too late for many of them and the industry may lose more retailers before things get better.”