ii view: JD Sports reports impressive like-for-like sales

Retailer JD Sports is a UK retail winner. Now its sights are set overseas.

Half-year results  

• Revenue up 47% to £2.72 billion
• Adjusted profit (EBITDA) up 37% to £235.2 million
• Interim dividend payment up 3.7% to 0.28p per share

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 multichannel proposition where a unique and constantly evolving sports and fashion premium brand offer is presented in a vibrant retail theatre with innovative digital technology.

"We are pleased by the continued positive trends to date in the second half in Sports Fashion whilst recognising the tougher comparatives ahead."

ii round-up:

Starting life back in 1981 as a single store in the North West of England, today the company has grown to become a multichannel retailer of sports, fashion and outdoor brands. 

Earlier this year JD Sports Fashion (LSE:JD.) agreed to buy rival Footasylum in a deal worth around £90 million. It was promoted to the UK's premier FTSE-100 index in June. 

It now operates a store portfolio of over 2,400 stores across the UK, Europe, the US and Asia. Its brands include JD, size?, Footpatrol, Finish Line, Blacks, millets and GO Outdoors. 

For a round-up of these half-year results, please click here. 

ii view:

Acceptance of more casual work wear and the rise of sports men and women to near rock star status are arguably trends which have helped fuel the impressive growth of sports retailers and apparel brands over recent years. Through expansion and acquisition, JD has clearly played its hand well. 

For investors, a 700%-plus gain in the share price over the last five years alone is highly impressive and exceeds that of both Amazon.com Inc (NASDAQ:AMZN) and Netflix Inc (NASDAQ:NFLX). As of today, a forward price/earnings (PE) ratio of around 19 and above both the three and 10-year averages suggests the share price is not obviously cheap. But it's hard to argue with the company's extremely impressive track record. 

Positives: 

• Diversity of product, brand name and geographical location
• Expanding international presence

Negatives:

• Brexit offers uncertainty
• Historic dividend yield of 0.3% (not guaranteed)

The average rating of stock market analysts:

Strong buy