JD Sports’ profits leap keeps Athleisure on trend

Forecast-busting results on Tuesday helped JD Sports banish City worries that the athleisure trend is finally on the wane.

Chairman Peter Cowgill said the chain had “fired on all fronts” over the summer, with half-year profits up 33% to another record of £102.7 million.

The shares jumped 6% to 361.1p, having fallen of late on fears that a profits warning from US rival Foot Locker marked the beginning of the end for the athleisure trend of fashion-driven sportswear.

Cowgill remains bullish, even though he admits the market is becoming increasingly crowded as more rivals seek a piece of the action.

He said: “We are the leaders of the pack and offer the best consumer experience.”

Cowgill is also relaxed about the potential threat to JD from Amazon’s recent deal to sell Nike-branded products.

“It’s more directed towards what you would classify as lower-tier products. We benefit from being first to market with premium new ranges.”

Today’s results are a return to form for the retailer after its most recent trading update failed to deliver the usual upgrade to forecasts.

JD, which is outpacing rival Sports Direct, now expects full-year profits at the top end of City hopes, close to £290 million.

ETX Capital’s Neil Wilson said: “Trouble at Foot Locker led some analysts to start writing the obituary of ‘athleisure’, but a big earnings beat from JD Sports suggests the trend very much alive and kicking.”