JD Sports banks on growth by planning to open further 200 stores despite shares tumbling 6%

HIGH street sports chain JD Sports is banking on growth despite profits falling 8 per cent last year to £912million.

The firm blamed a “challenging market” as the news sent its shares tumbling around 6 per cent today.

Revenues still climbed 2.7 per cent to £10.4billion in the year to the end of January.

JD opened more than 200 shops last year and wants to open a further 200 this financial year.

Sales have surpassed expectations at the new stores by as much as a fifth, according to boss Regis Schultz, who added: “We are on track.”

The firm also launched its first store in the Middle East this month.

Footwear sales were the year’s biggest success, rising 8.2 per cent, but demand for jackets and coats fell because of the mild winter.

The company sold brands Tessuti, Scotts, Choice, Giulio and Cricket to rival Frasers Group last year.

Frasers today hiked its stake in German fashion firm Hugo Boss to £305million or 2.47 per cent.

Hugo Boss’s share price fell more than 13 per cent in one day last month, after it warned of weak demand in China and poor confidence in the US.

BANK RETURN

THE Government has flogged £1.24billion of shares in NatWest, cutting its holding to 22.5 per cent.

It has been slowly returning the high street bank, which it bailed out during the 2008 banking crisis, into private ownership.

The Government plans to sell all its interest in the bank by 2026.

MERGE PROBE

THE Competition and Markets Authority is probing Nationwide’s planned £2.9billion takeover of rival Virgin Money.

The CMA said the deal could “result in a substantial lessening of competition” within the UK market.

Last week 89 per cent of Virgin Money shareholders backed the deal.