JD Sports Fashion has reported operating losses of £6.4m in its fashion arm for the year to February 1, compared to losses of £1.7m in 2013, as total revenues rose by 5.7% to £1.3bn.
A “disappointing” performance at Bank hampered the fashion division, which also includes Ark and Tessuti.
JD said the “significant structural change” in the sector - moving towards own-brand fast fashion online retailers and a “disposable fashion culture”, had resulted in a “difficult” year for the chain.
In July JD appointed Gwynn Milligan as managing director in order to turnaround the business. The company will now seek to expand Bank’s multichannel proposition and will address “excessive” property costs.
Despite this, group operating profit before exceptional items increased by 27.5% to £78.2m, up from £61.3m in 2013, thanks to an “exceptional” performance in sport and a reduction in the losses in the outdoor arm of the business.
In the outdoor business Blacks and Millets broke even, compared with a loss of £4.9m in the second half of the previous year.
Peter Cowgill, executive chairman, said the core sports fascias JD and Size delivered “substantial progress” during the year and are the “foundation for profit and expansion” in the group.
He added: “The group continues to be well positioned with its retail proposition, increased financial resources and extensive management experience to take advantage of opportunities both in the UK and internationally.”
During the year the company paid a non-cash charge of £11.8m to write off goodwill relating to Bank. After allowing for exceptional items, group operating profit increased by £3.1m to £59.1m.