JD Sports shares jump on strong sales growth, profit outlook intact
Sportswear retailer's shares up 9.4% as it outperforms market in latest year.
Shares in sports fashion firm JD Sports (LSE: JD) climbed 9.4% this morning after the company reported outperforming the sportswear market in its latest financial year and backed its profit guidance, handing its stock a boost after January's outlook cut hammered the shares.
The FTSE 100 group said like-for-like sales rose 4.2% year-on-year in the 53 weeks ended February 3. On an organic, constant currency basis, sales were up an even stronger 8.4%. Total revenues grew 3.6% to around £10.5 billion.
As a result, JD expects full-year pre-tax profit before one-off items to meet the £915 million to £935 million range guided in January. This is down from £991.4 million the prior year.
JD had cut its profit outlook to that range on January 4, sparking a more than 20% plunge in its share price as it moved away from earlier guidance of £1.04 billion.
CEO Regis Schultz said: "We made good strategic progress, opening 215 new JD stores, and focusing our effort on developing JD and enhancing EPS through taking full control of ISRG and MIG."
Looking ahead, the group issued an initial 2025 profit forecast of £900 million to £980 million. Schultz warned of a "challenging" current trading environment with less product innovation and elevated promotional activity online but said conditions should improve later in the year.
Despite today's jump, JD's stock remains down 24% over the last 12 months and has fallen 21% year-to-date amid the volatile retail backdrop.
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