27th Jun 2023 08:42
(Alliance News) - JD Sports Fashion PLC on Tuesday said it expects to generate annual profit of over GBP1 billion as it continues to expand.
Ahead of its annual general meeting on Tuesday, the sportswear retailer said pretax profit and adjusting items in the financial year ending February 3, 2024 will be in line with market consensus of GBP1.04 billion, up from GBP991.4 million in financial 2023.
JD Sports also predicts a normalised trading pattern, with 35% of profit for financial 2024 generated in the first half of the year.
The retailer added it has seen further positive trading in all regions through May, with overall growth in organic sales at constant exchange rates in the month of around 8%, while in the first three months of the year, organic sales growth at constant exchange rates was more than 15%.
JD Sports explained that the moderation in growth was in line with expectations and reflected tougher comparatives in the year prior as the supply chain normalised and the availability of product improved. The company also noted that there has been some softening of trade in North America, which partially offset positive trends in the UK, Europe and the Asia Pacific region.
Shares in JD Sports were down 4.8% at 139.60 pence each in London on Tuesday morning.
The retailer added it has opened an additional 32 stores in the first four months of the year and is on track to open 150 stores over the course of financial 2024.
It also said it expects to formally close its acquisition of Groupe Courir SAS later in the year. This comes after JD Sports announced its plans last month to buy the Paris-based footwear and apparel retailer for an enterprise value of EUR520 million.
By Sabrina Penty, Alliance News reporter
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