JD Sports lifts annual profits guidance after strong H2
By Frank Prenesti
Date: Wednesday 12 Jan 2022
(Sharecast News) - JD Sports Fashion lifted annual profits guidance after revenues rose 10% in the 22 weeks to January 1, with US fiscal stimulus also providing a trading boost.
The sports fashion chain on Wednesday said it expected pre-tax profits of at least £875m compared with previous expectations of £810m after strong trading during Christmas and Black Friday. It added that US fiscal stimulus "may have contributed up to £100m to this result" as consumers spent their government cheques at its streetwear retailer DTLR Villa and Shoe Palace chains.
Looking ahead, JD Sports said it was "well placed" to meet challenges posed by the Covid-19 pandemic across Europe and Southeast Asia and global supply chain constraints.
It added that headline pre-tax profits for the full year to January 28, 2023 would be in line with the current year.
"We would expect, however, that the phasing of the profit in the year to 28 January 2023 will revert more to historic norms with approximately 35% to 40% of the annual profit being generated in the first half," the company said in a trading update.
"In our view, JD Sports remains a best-in-class retailer amongst our universe of general retailers. The company is tightly managed with excellent cash generation with tight stock and cost controls," said analysts at Shore Capital.
"Today's short statement should reassure investors that the group remains on track as it delivers a year of good growth in revenues and earnings."
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