Proactive Investors - JD Sports Fashion PLC (LON:JD) reported a big improvement in sales growth for the past quarter but profit margins were crimped by promotional investment.
Organic sales for the sportswear retailer grew 8.3% in the 13 weeks to 3 August or 2.4% on a like-for-like basis.
That means that, after a soft first quarter, the first six months of the company's financial year saw organic growth up 6.4%, with LFL sales growth of 0.7%.
Chief executive Régis Schultz highlighted double-digit organic sales growth in North America and Europe, supported by further rollout of 85 new JD-branded stores and completion of the acquisition of Nasdaq-listed Hibbett just before the period end.
He said the quarter-on-quarter trading improvement was "driven primarily by the strength of our multi-brand operating model and softer comparatives with the previous year".
However, gross profit margin fell 30 basis points compared to last year, or 10 points for the first half as a whole, mainly affecting clothing and online, where the UK was most impacted.
"The global macro environment remains volatile and so we continue to be cautious on our outlook for the rest of the year," said Schutlz.
But following the improvement in trading and allowing for an anticipated £15 million headwind from a stronger pound, he maintained guidance for an adjusted profit before tax of £955-1,035 million, not including Hibbett.