JD Sports Fashion, the sportswear and footwear retailer, said this morning that it would post better than expected annual profits after a strong Christmas at its fashion focused stores.

Like-for-like sales at the chain over the five weeks to January 3 rose 2.8 per cent on the previous year, despite the group holding off its Christmas sale until Boxing Day to maintain margins.

Its policy was in contrast to much of the high street that began discounting much earlier to attract customers. The group also faced tough comparatives, given it posted a 9.6 per cent rise in sales last Christmas.

JD’s fashion-fronted stores reported a 12.5 per cent rise in sales over the period, while takings at its sports fronted shops edged up 1 per cent.

Cumulative like-for-like sales for the 48 weeks to January 3 are 3.8 per cent higher than last year, with gross profit margins showing a marginal improvement, and subsequently the company now believes it will post a marginally better than expected pre-tax profit when it reports annual results in April.

The group’s bullish forecast is in stark contrast to many other high street chains such as Marks & Spencer and Next, which have struggled to persuade customers to part with their cash amid uncertain economic times.

David Stoddart, an analyst at Altium, said the Christmas trading update revealed stronger progress than he had expected, noting the group continues to outperform its peers.

In early trading JD’s shares rose more than 12 per cent, up 25p, to 230p.

Elsewhere on the high street Jessops, the camera retailer, reported a 3.1 per cent rise in like for like sales over the five weeks to January 5 and assured invested that it would deliver annual results in line with expectations.

However, the group did caution that margins had been affected by the “challenging market conditions for retailers” and that like for like sales over the longer 14-week period to January 5 had fallen 5.6 per cent.

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