12th Jan 2022 08:26
(Alliance News) - JD Sports Fashion PLC on Wednesday raised its earnings outlook for its current financial year after a strong trading period that included roaring sales for Black Friday and Christmas.
The Bury, Lancashire-based firm said it delivered an "extremely robust" performance against a backdrop of disruption to supply chain operations from some of its key brand partners.
The sports and outdoor clothing retailer said total revenue for the 22 week period that ended January 1 in its like-for-like businesses was more than 10% ahead of the same period in 2020 with an equally positive performance across the Black Friday and Christmas period. Gross margins for the second half were in line with the prior year.
JD Sports said that due to strong consumer demand, it was confident pretax profit for the year to January 29 will be ahead of market forecasts. It expects a headline pretax profit of at least GBP875 million. It posted pretax profit of GBP324.0 million in financial 2021.
For financial year 2023, JD said it expectes annual headline pretax profit to be in line with the current year, which is ahead of current market expectations.
"Looking ahead, management are cognisant of the ongoing challenges with operational restrictions from the Covid-19 pandemic across Europe and Southeast Asia combined with the well-publicised short-term constraint in the supply of inventory from certain brands. However, the group, with its buying and merchandising capabilities, its breadth in brands and product assortment and a deep multichannel connection with the consumer, is well placed to manage these challenges," JD Sports said.
JD Sports shares were 1.4% higher at 221.86 pence each in London in early Wednesday morning activity.
Annual results will be published on April 12.
By Will Paige; [email protected]
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