Mike Ashley rival JD Sports in rude health with new excellent figures and soaring share price
Mike Ashley will have taken notice as JD Sports announced their latest update on Tuesday.
The Sports Direct rival is in rude health and has reported a ‘10% leap in like-for-like sales in the UK during the first half of its financial year’, which is in stark contrast to the fortunes of so many others.
The ‘wider’ JD Sports group saw a 47% increase in revenues to £2.72bn and a 37% increase in underlying profits.
The JD Sports share price predictably soared on the back of the figures, rising from a starting point of 641p this morning to 679p (at 1.20pm), a rise of over 7% on the day.
Indeed JD Sports have seen their share price soar from 325p on 19 December 2018 to that 679p on 10 September 2019, an increase of almost 110%.
Whilst for Mike Ashley and Sports Direct, their share price has gone from 416p on 20 July 2018 to 259p on 10 September 2019, a fall of some 38% in just over a year.
JD Sports has gone for the higher end of the market as compared to the Mike Ashley SD jumble sale model.
The longer-term directions looking even more markedly different.
Sports Direct going from 922p on 4 April 2014 to 259p today, a fall of around 72%.
In the same five year period JD Sports have gone from 80p to 679p, a remarkable increase of some 745%.
Sympathy from Newcastle fans will be in very short supply, after Mike Ashley once again refused to sell the club this summer, despite pretending otherwise.
The past 12 years have seen Newcastle United used simply as a marketing tool for Ashley’s retail empire, with only an average of £83,333 per year paid by Sports Direct to NUFC for the enormous worldwide marketing the football club has provided.
The all-time low being when Mike Ashley rebranded St James Park the Sports Direct Arena and not a penny was paid by SD for that change.
Sky News report:
‘JD Sports defies high street crisis to grow sales and profits…as rivals struggle
JD Sports has reported a 10% leap in like-for-like sales in the UK during the first half of its financial year, in defiance of the struggles facing the wider high street.
The sports fashion chain credited investment in its store and online offering for the performance across the six months to 3 August.
The wider group, which includes a gym chain and overseas store brands, recorded a 47% surge in revenues to £2.72bn with underlying profits growing by 37% to £235.2m.
On a pre-tax profit basis, which takes one-off costs into account, earnings were 6% higher at almost £130m.
JD Sports executive chairman Peter Cowgill said:
“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% with an improved conversion reflecting consumers’ increasingly positive reaction to our elevated multi-channel proposition where a unique and constantly evolving sports and fashion premium brand offer is presented in a vibrant retail theatre with innovative digital technology.”
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