JD Sports has taken a £2.2m hit to its profits following the purchase of the struggling retailer Blacks Leisure.
The outdoor brand burdened JD Sports with excessively large and over rented stores and a lack of stock which the company had to replenish.
As a result, JD Sports’ pre tax profits fell 14 per cent to £67.4m for the 12 months ending 28 January 2012 although revenues were up by 20 per cent to over £1 billion.
Peter Cowgill, executive chairman of JD Sports, said the company has invested significantly in brands, businesses and infrastructure to strengthen the platform for future development of the group.
He added: “Despite the continued difficult trading conditions, we are pleased to report some positive results within the group particularly from our mainland European businesses.
“While we expect some improvement in consumer confidence from the forthcoming international sporting events, we remain cautious. Margins remain under pressure as consumers continue to be offer driven.
“The group is exceptionally well positioned with its retail proposition, financial resources and management experience to take advantage of any opportunities both in the UK and internationally.”