JD Sports elevates outlook as shoppers venture into sportswear

People walk past a JD Sports store in London, Britain April 11, 2017. REUTERS / Neil Hall / File Photo

Register now for FREE and unlimited access to Reuters.com

Register

  • Benefit from an overall profit before tax of at least 875 million stg
  • US government fiscal stimulus helped profits
  • Sees the profit of the following fiscal year in line with the current fiscal year

Jan. 12 (Reuters) – JD Sports Fashion (JD.L) on Wednesday raised its annual profit forecast for the second time in four months, as shoppers started shopping for sportswear during the holidays and consumers Americans have spent their stimulus checks on the latest trends.

Britain’s largest sportswear retailer, which expanded into the United States during the pandemic with the purchase of streetwear retailer DTLR Villa and Shoe Palace, has ignored supply chain disruptions and the new COVID-19 restrictions.

“JD Sports scored a Christmas cracker on a pitch full of obstacles,” said Susannah Streeter, analyst at Hargreaves Lansdown.

Register now for FREE and unlimited access to Reuters.com

Register

“With sports and fashion fans showing a willingness to line up around the block to get their hands on the latest styles, sales are expected to remain strong even with belts tight elsewhere.”

JD Sports expects pre-tax profit of at least 875 million pounds ($ 1.2 billion) for the year to Jan. 29, ahead of current market expectations of 810 million pounds. He had previously forecast a profit of at least 750 million pounds.

Shares of company FTSE 100 rose as much as 4.8%, before reversing to trade down 1.7% at 9:15 a.m. GMT, as it also said earnings for the year ended in January 2023 would be consistent with the current year and “return more to historical standards”.

JD Sports, which has been embroiled in a long battle with the British antitrust watchdog over its purchase of little rival Footasylum, has seen demand rise since closures were relaxed and people started to visit its stores again. stores.

Comparable revenue for the 22 weeks leading up to Jan.1 rose 10%, he said, without giving details of the best-selling lines.

He said the US government’s fiscal stimulus in the first half of 2021 could have contributed up to £ 100million to his annual revenue.

($ 1 = 0.7336 pounds)

Register now for FREE and unlimited access to Reuters.com

Register

Reporting by Muhammed Husain and Yadarisa Shabong in Bengaluru Editing by Subhranshu Sahu and Mark Potter

Our Standards: Thomson Reuters Trust Principles.

Comments are closed.