JD Sports hikes profit guidance after strong demand

JD Sports has said that increased consumer demand means that the company’s pre-tax profits for the year to 29 January 2022 will be ahead of market expectations, which currently average £810 million.

The sports fashion brand said that it now expects profits of at least £875 million for the 12-month period. According to the retailer, success in the US during the first half of the year could have contributed up to £100 million.

Total revenues for the 22-week period to 1 January 2022 were more than 10 per cent ahead of the same period of 2020.

“Given the challenges that have prevailed from the COVID-19 pandemic, including the disruption of the supply chain operations of some of our key brand partners, this is another extremely robust performance which further demonstrates the strength of the relationship that our fascias have with their consumers, the agility of our multichannel operations, the strength of our operational infrastructure and the resilience of our colleagues,” said the company in its financial statement.

It added that the company is concious of ongoing supply chain issues and operational restrictions across Europe and Southeast Asia. But it did say that it is well placed to manage these challenges.

“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,” said Peter Cowgill, executive chairman.

Assuming no further trading restrictions in its most successful markets of the UK and North America, the retailer predicts that 2022/23 pre-tax profits will be in line with 2021/22, ahead of current expectations.

But JD Sports said that it expects that the phasing of the profit in the year to 28 January 2023 will revert back to more historic norms, with around 35-40 per cent of annual profit being generated in the first half.

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