RETAILER JD Sports Fashion says significant improvement has stopped losses across its outdoor leisure division.

The group revealed its Blacks and Millets brands broke even in the second half of the year to February 1, compared with losses of £4.9m a year ago.

Bosses say they expect further improvement this year.

Across the group, annual underlying profits were 27 per cent higher at £77m.

This was as continued strong growth for core sports retail brands JD and Size more than offset bigger losses at its fashion division of Bank and Scotts.

Profits from the sports stores increased by £15.5m to £93.4m.

But fashion racked up losses of £6.4m as Bank struggled as young shoppers prefer online shopping.

JD Sports has found the task of reviving its outdoor brands harder than expected after buying Blacks Leisure, which included Millets, out of administration in January 2012.

It has reduced the number of stores to 156, as well as relocating offices and warehousing as part of a turnaround plan.

The two brands are also being run with separate and significantly changed commercial teams as JD said they attract different types of customers.

Peter Cowgill, executive chairman, said: “Inevitably, improvements in financial performance lag operational changes.

“However, I am encouraged that the Blacks and Millets business achieved a significant improvement in the second- half of the year and we expect continued progress in the new financial year.

“The group is well positioned with its increased financial resources and extensive management experience to take advantage of opportunities in the UK and internationally.”

The company has 348 JD stores in the UK and Ireland, with Size, Chausport, Sprinter and other JD outlets in Europe giving it a total of 563 sports shops.

There are 89 Bank shops and 33 under the Scotts brand.