Millets name saved after profits soar at JD Sports

Fashion retailer JD Sports has given its Millets brand a reprieve after a “robust” performance at its sportswear business saw profits more than double during the first half of the year.

The group said its core sports chains enjoyed a 55 per cent rise in operating profits before one-off items to £29.1 million for the six months to 3 August, on sales 11.2 per cent higher at £412.7m.

Losses at its Blacks and Millets outdoor gear stores, which were bought out of administration last year, narrowed to £8.9m, down from £10m a year earlier.

JD had been planning to axe the Millets brand, in favour of a 130-strong Blacks chain, but has decided to keep the businesses separate. Blacks currently has a network of 81 stores, while Millets has 76 outlets.

The group, which also owns the Bank and Scotts fashion chains, said overall pre-tax profits rose to £6.1m for the first half, from £2.9m last year, as revenues grew 2 per cent to £567.4m.

Executive chairman Peter Cowgill said: “Given the continued robust performance in our core sports fascias, the board believes that the group is well positioned to deliver results that are within the range of current expectations.”

Analysts at Cantor expect an annual profit of £72m, but said there was the potential for upgrades. The interim dividend, to be paid on 10 January, was lifted 3.5 per cent to 4.45p a share.