JD Sports expected to defy high street with double-digit growth in profit

// JD Sports poised to report on annual profits this Tuesday
// City analysts will play close attention to retailer’s updates on recent spate of acquisitions
// Further focus on international expansion is likely under Peter Cowgill’s leadership

Analysts at Shore Capital say they expect JD Sports to post double-digit profit growth on Tuesday as the retailer continues to defy the wider high street downturn.

Consensus estimates say the sportswear specialist could report annual revenue up 18 per cent to more than £4.5 billion and profit before tax of £349.2 million.

“We have been highlighting for some time that JD has several growth levers that continue to give the business momentum and double-digit earnings growth potential,” Shore Capital said.

It’s thought JD Sports would also use its annual report to give more detail on its £90.1 million takeover of Footasylum which was declared as “wholly unconditional” on Friday.

JD Sports received acceptance for its 82.5p per share offer from 78.2 million Footasylum shareholders, representing around 75 per cent of issued share capital.

It also comes just weeks after JD also bought Liam Gallagher’s menswear chain Pretty Green out of administration for an undisclosed deal.

City analysts will be playing close attention to JD’s rapid acquisition strategy. 

While Sports Direct boss Mike Ashley once boasted he would put JD Sports out of business, executive chairman Peter Cowgill may end up with the last laugh.

Having secured exclusive products from Nike and Adidas, Cowgill’s focus on the athlesiure sector of the market is likely to continue with further US expansion planned for the year. 

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