JD Sports sees FY ahead of guidance after bumper Christmas

Current market expectations for the year to January 28 are for group profit before tax and exceptional items of £933m-985m although the final figure will reflect trading through the rest of January with the post-Christmas sale period still to take place in some of the company’s most important European markets.

Sales strengthened through the second half with total revenue growth for the 22 weeks to the end of 2022 of more than 10%, with retail revenue through the Christmas period, both in stores and online, growing more than 20%.

The company added that it expected pre-tax profit before tax and exceptional items of just over £1bn for the full year to February 3, 2024.

“We are very encouraged by the performance of our global premium sports fascias. Notably, our businesses in North America have, as expected, recovered strongly delivering growth of more than 20% through the second half to date,” JD Sports said on Wednesday.

“This improvement reflects both the improved availability of product in all of our banners and the positive momentum in the development of the JD fascia with 134 stores now trading as JD across the United States and Canada.”

“Elsewhere, our businesses in the UK and Republic of Ireland, Europe and Asia Pacific have maintained their first half momentum, both in stores and online, which is reassuring and demonstrates the ongoing resilience of our proposition and the enduring strength of our multi-channel consumer engagement.”

JD Sports is now setting its sights on continuing international multi-channel development of the group's sports fashion businesses and would accelerate investment in these businesses through 2023.

AJ Bell investment director Russ Mould said the results were an indicator of which retailers were weathering the cost-of-living crisis best.

“This is a story of the survival of the fittest. Weaker retailers have fallen by the wayside as the likes of Next and JD have come to the fore – the latter even enjoying highest ever weekly sales in the run-up to Christmas."

“This is testament to the continuing appeal of the brands which fill JD’s stores and to a youthful consumer who are often living at home and therefore don’t have utility bills, rent or a mortgage to pay.

“JD is also benefiting from improved availability of products and easing shipping costs – two headwinds which had an impact on profitability in 2022."

“All eyes will now be on a big investor day at the beginning of February when JD will be expected to update on its digital strategy and what it intends to do with its increasingly large pile of cash.”

Reporting by Frank Prenesti for Sharecast.com