JD Sports eyes huge full-year profit jump after record interims

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JD Sports Fashion PLC (LSE:JD.) said full-year profits will grow strongly after posting record interims.


The athleisure retailer reckons it will make a headline profit before tax for the full year of at least GBP750mln in the year to January 2022, which is well above last year’s GBP421mln and the previous period’s GBP438mln.


READ: JD Sports ‘perplexed and disappointed’ as Footasylum deal blocked again


It said it is encouraged by performance in recent weeks but still maintained a cautious stance as retail footfall remains weak in many countries, while the peak Christmas period will not benefit from stimulus cheques in the US and might be hit by further restrictions.


As for the Footasylum acquisition, which the UK Competition and Markets Authority said should be blocked in its latest ruling, JD Sports noted that the decision is provisional and it will not take action until the CMA final report is published next month.


In the 26 weeks ended 31 July, revenue rocketed to GBP3.8bn from GBP2.5bn last year, with profit before tax up ten-fold to GBP439mln. Net cash at period-end was GBP995mln.


The FTSE 100 group did not declare an interim dividend as it is waiting to see how further restrictions may play out on full-year performance, and potentially declare a larger payout with the final results.


The US segment benefited from government stimulus cheques and the acquisitions of Shoe Palace and DTLR, while stores in the UK and Republic of Ireland were helped by strong pent-up demand after reopening.


The outdoor business returned to profits, with demand in the outdoor living and cycling categories buoyed by UK ‘staycation’ and people appreciating the benefits of spending time outside the home.

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