Shares in JD Sports were down on the FTSE 250 after the retailer's cautious comments about the year ahead offset forecast beating results for the full year ended 29 January.

Group revenue increased 15 per cent in the period to £883.7 million, while profit before tax and exceptional items jumped 21 per cent to £81.6 million. After exceptional items pre-tax profit increased 28 per cent to £80 million.

Net cash rose from £60.4 million at the beginning of the period to £86.1 million at the end.

During the year the group acquired the brands Sonneti, Chilli Pepper and Nanny State, began operations in France with the opening of three stores and acquired Champion in the Republic of Ireland.

Following the results the group said it would be raising its dividend 28 per cent to 23.00 pence per share.

Peter Cowgill, Executive Chairman of JD Sports, said, "The year ended 29 January 2011 has been the seventh successive year of good progress in revenue and profitability for the Group.

"Following successive years of record results for the Group, the retail environment has recently been significantly impacted by adverse fiscal changes in addition to the multiple current economic pressures. Our core business already possesses very strong sales densities and margins, being the result of continual growth in both measures for several years. Against that background, therefore, it is inevitable that the Board is extremely cautious in its outlook, particularly when the profits achieved for the year to 29 January 2011 are effectively rebased purely as a result of the impact of increased VAT.

"Management remain highly focused on all avenues of revenue growth, margin protection and cost control available to us to endeavour to deliver the optimum outturn, minimise the impact of the factors above, and with a strong balance sheet and dominant market position in our core business, we expect to be able to deliver operational and financial progress for the Group over the long term."

Keith Bowman, Equity Analyst at Hargreaves Lansdown Stockbrokers, commented, "Above forecast profits have unfortunately been more than offset by notably cautious management outlook comments. Strong demand for brands such as Nike and Adidas have helped generate a near 15pc uplift in sales, with the football World Cup and the group's push overseas both aiding performance. Furthermore, difficulties at rivals may also have played their part.

"In all, whilst today's results have again underlined the group's solid market position, sentiment towards the sector remains fragile, with some profit taking in JD shares today seen as warranted".

"Market consensus opinion currently denotes a strong buy."

By 10:00 shares in JD Sports were down 2.94 per cent on the FTSE 250 to 875.00 pence per share.

FTSE