Back to normal.
After upsetting investors earlier this summer with the news that it was merely on track to meet expectations in its full-year results, JD Sports has returned to form by confirming that it expects growth to be at the upper end of forecasts in its latest trading update today.
The trend for so-called “athleisure” has helped propel shares in JD upward over the past few years, but the stock has lost some momentum this year, and dropped more than eight per cent in a day in June after it failed to upgrade forecasts.
Announcing its half-year results on Tuesday, however, the retailer said it now expects full-year profits to come in “towards the upper end” or market expectations of £268m to £290m.
The prediction came as it reported a 41 per cent year on year increase in revenues in the six months to July 29, to £1.4bn.
Profit before tax grew at a slower rate, rising 33 per cent to £102.7m. The company blamed its lower margins on the weak pound, which drove up the cost of imports, but said the impact was in line with its expectations.
JD also said that it would keep an eye out for further acquisition opportunities to take advantage of its £222m cash pile, following the completion its £112m deal for outdoor brand Go Outdoors earlier this year.
Peter Cowgill, JD executive chairman, said:
This is another pleasing result demonstrating the strength of our highly differentiated multichannel proposition and our ability to prosper in an increasingly competitive market for athletic inspired footwear and apparel.