JD Sports has raced ahead in morning trading after the sports retailer said strong festive sales mean it will 'marginally exceed' the City's forecasts for annual profits.
The company, in which Newcastle United owner Mike Ashley's rival business Sports Direct has a stake, did not start its sales until Boxing Day - in contrast with some other High Street operators - and managed to maintain margins over Christmas.
Group like for like sales increased 2.8% during the five week period to January 3 this year, which may not look particularly impressive but sales in the comparable period a year ago were very strong: up almost 10%.
Sales through its sports outlets were up 1%, reflecting a trend away from sportswear superbrands seen at other retailers, but sales through its fashion stores - Scotts and Bank - were up 12.5%.
As a result, JD Sports' cumulative like for like sales for the 48 week period to January 3 are up 3.8% - with sports sales up 3.1% and fashion up 8%. The company said gross profit margins having improved marginally over the full period compared to the previous year.
"The Board now believes that current market expectations for profit before tax and exceptional items will be marginally exceeded," the company added, helping its shares gain 27p to 232p.
The FTSE 100 index meanwhile, is down 18.16 points at 4487.21 points, weighed down by weak UK industrial production data which paints a grim picture of the UK economy.
