Battle Of The Sports Retailers

Two sports and leisurewear retailers announced full-year results this morning: John David Group (LSE: JD) and Blacks Leisure (LSE: BSLA). With JJB Sports (LSE: JJB) having announced results a couple of weeks ago, I thought it would be interesting to compare their fortunes.

John David Group

Owner of JD Sports and fashion outlets JD Fashion and Scotts, the group acquired the Allsports business from administration during the year. The Allsports stores that have been retained have been converted to the JD Sports format.

For the year to the end of January, like-for-like sales in the sports business rose 0.3%, but fell back 8.5% in the fashion business due, in part, to stock shortages that have since been resolved. Fashion accounts for 8% of sales. Total sales for the group were up 4%.

Blacks Leisure

Millets accounts for about three quarters of its store portfolio, with Blacks and Free Spirit making up the remainder. The company also owns the O'Neill boardwear brand.

Full-year figures to the end of February showed like-for-like sales down 3.3%, with total sales up 1.1%.

JJB Sports

Like-for-like sales were down 4.3% -- you can read more details here.

Some stats

Comparison

JJB is clearly the biggest and most diversified of the three, including fitness centres in its portfolio. This morning it acquired Golf TV Limited for £3.3m. However, it has clearly suffered from increased competition, and analysts' forecasts (for what they're worth) for the next couple of years show sluggish growth.

John David Group do appear to have got their act together, with both sales and profits going in the right direction last year. This year should benefit from a full contribution from the Allsports acquisition.

Blacks is more focused on the outdoor and camping side of things, and in that sense appears to have less direct competition on the High Street. It's also worth noting that Blacks has a pot of cash for future investment. Having said that, it is trading at a considerable premium to the others.

If I had to pick one, based on this very preliminary investigation, I'd go for John David Group, as Blacks just looks too expensive at the moment, and I'm not convinced that JJB can turn itself around any time soon.

But then I don't have to pick one, and neither do you. A comparison like this is a little academic unless for some reason you particularly want to select a sports and leisure retailer, perhaps thinking (which I don't) that it's a good sub-sector to be in. Or you could take a sector-neutral position by doing a pairs trade, buying one and selling the other short -- adventurous stuff! Either way, the nerd in me enjoys these comparisons.

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