JD Sports upgrades profit outlook after bumper Christmas

 

By guest author Sahar Nazir from Retail Gazette

January 11, 2023

 

Caption courtesy by Retail Gazette
  • JD Sports upgrades profit guidance after sales double over Christmas
  • Sales strengthened during the second half with a total revenue growth of more than 10%, compared with a growth of 5 % over the first half of its financial year

JD Sports has upgraded its profit outlook after sales grew by more than 10 % over the Christmas trading period.

The sportswear retailer said its revenues increased for the 22 weeks to 31 December, compared with a growth of 5% over the first half of its financial year.

It now expects full year profit to come in at the very top end of expectations.

Current market expectations for the year to January 28 are for group profit before tax and exceptional items of GBP 933 million to 985 million, although the final figure will reflect trading through the rest of January.

Sales strengthened during the second half with a total revenue growth 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 GBP 1 billion 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.

“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 CEO, Régis Schultz said: “The engagement and commitment of our teams through the peak trading period has been phenomenal with many of our stores and websites delivering record sales and JD’s market-leading product and retail experience capturing the imagination of customers globally like never before.”

“Our strategic focus on the international and digital expansion of our global premium sports fascias is underpinned by the continued strength of these businesses.”

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www.global.jdsports.com