JD Sport's festive bouncebackability

JD SPORTS defied both adverse weather and sober consumer spending during the holiday shopping season, reporting a rise in festive sales that will lead to higher-then-expected profits for the full year.

The leisurewear retailer posted a 2.5 per cent rise in like-for-like sales during the five weeks to 1 January, driven in large part by the strong performance of in-house brands such as Mckenzie, Carbrini and Duffer. As a result, pre-tax profits for the year to 29 January are expected to beat the 75 million previously anticipated.

The performance by the group - which trades as JD Sports, Size, Bank and Scotts - contrasts sharply with that of both the broader high street and JD's immediate competitors in the quoted leisurewear sector. In a note to investors, analysts at Singer Capital Markets described the latest period of trading as "superb", and predicted that consensus forecasts would now settle around the 79m mark.

Executive chairman Peter Cowgill said there would be "significant challenges" in the year ahead in the form of VAT increases and higher costs for raw materials such as cotton. However, he would be disappointed if JD Sports didn't maintain profits growth.

He also thanked staff for their efforts during the run-up to Christmas, which ensured that the group was "largely unaffected" by December's severe winter weather.

"This performance is the result of our strong product and brand proposition presented in inviting retail settings," he said.

Christmas trading updates have been dominated by complaints from retailers about the impact of last month's Arctic weather on high street trading. Figures from market researchers Experian estimate that footfall on the UK's shopping thoroughfares during the festive season was 3.1 per cent lower than last year, although it was higher in Scotland.

JD's strong showing also contrasts sharply with that of its main competitor, JJB Sports, which last month reported a roughly 16 per cent fall in sales between 8 November and 19 December. Neither JJB nor Sports Direct, another competing chain, are expected to release a Christmas trading statement.

JJB is reportedly preparing to tap shareholders for a second injection of cash following an emergency 31.5m fundraising launched on Christmas Eve. The company, which was on the verge of bankruptcy in 2009, has suffered from cut-throat competition and stocking issues.

JD Sports will report its full-year results on 13 April. Its shares closed up 3.4 per cent at 895p.