JD Sports lifts annual profit guidance after ‘robust’ Christmas trading

JD Sports raises profit guidance following ‘robust’ Christmas
JD Sports said it was "well placed" to meet challenges posed by Covid-19.
// JD Sports lifts its annual profits guidance after revenues rose 10% in the 22 weeks to January 1
// Despite supply chain pressures over the festive period, the retailer said it produced an “extremely robust” performance

JD Sports said it delivered an “extremely robust” performance against a backdrop of disruption of the supply chain operations of some of its key brand partners.

The sports fashion retailer hailed a strong second half to 2021 and boosted its full-year profit guidance after revenues for the 22-week period to 1 January 2022 came in more than 10% ahead of the same period in 2020

The business said it expected pre-tax profits of at least £875 million compared with previous expectations of £810 million after strong trading during Christmas and Black Friday.

READ MORE: Frasers Group offers to buy Footasylum from JD Sports

The retailer added that it benefitted from the fiscal stimulus in the US in the first half of the year, where government fueled consumer spending by giving money to lower income households – this contributed £100 million to its total profit.

JD Sports executive chair Peter Cowgill said: “The commitment of our colleagues is crucial to our success and I would like to thank everyone in our various businesses for their significant contribution in delivering this outstanding performance.”

“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.

It added that headline pre-tax profits for the full year to January 28, 2023 would be in line with the current year.

Click here to sign up to Retail Gazette‘s free daily email newsletter


Please enter your comment!
Please enter your name here