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magazineProfits jump again at JD Sports
JD SPORTS FASHION (JD.) 490.9p
Gain to date: 8.8%
Original entry point: Buy at 451.3p, 12 July 2018
Our bullish summer call on globally expanding JD Sports Fashion (JD.) is being rewarded with a rapid 8.8% gain.
And with the sports, fashion and outdoor brands purveyor firing on all cylinders, we’re staying positive on the stock.
Riding the ‘athleisure’ boom among youthful gym-goers and fashion-conscious consumers, Peter Cowgill-led JD Sports continues to buck the wider high street doom and gloom and we’re excited by the overseas potential of the core JD franchise.
Forecast-beating half year results (11 Sep) showed strong sales growth, a 19% rise in pre-tax profit to a record £121.9m and a very promising early showing from the US.
While like-for-like sales growth in UK stores was slightly negative, double digit online growth ensured a positive outcome overall, while in store like-for-like growth in Europe was positive.
The acquisition of US footwear seller Finish Line has given JD Sports a new growth platform across the pond.
For the year to January, broker Peel Hunt forecasts a jump in adjusted pre-tax profit from £307.4m to £345m.
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