By Christian Moess Laursen
JD Sports Fashion today reported its financial results for the first half of fiscal 2024. Here’s what we watched:
REVENUE: The FTSE 100-listed fashion retailer generated a revenue of 4.78 billion pounds ($5.90 billion) in the half-year ended July 31 from GBP4.42 billion in the same period a year before. This edged higher than a company-compiled consensus forecast of GBP4.74 billion.
PRETAX PROFIT: The company’s pretax profit rose to GBP375.2 million from GBP298.3 million a year prior, and above market views of GBP368.0 million, according to a consensus provided by Visible Alpha.
WHAT WE WATCHED:
– GUIDANCE: The company once again reaffirmed its full-year guidance of GBP1.04 billion in headline profit before tax and exceptional items. “The steady outlook speaks volumes about the resilience of JD Sports’ core consumers and the strength of its strategic initiatives,” Shore Capital analyst Eleonora Dani says in a research note.
– SECTOR CONCERNS: JD Sports’ positive print was in particular driven by a surprisingly strong North America performance, with 15% sales growth in its key Sports Fashion business in the region. This defied wider sector pessimism due to macroeconomic headwinds, low consumer confidence and guidance cuts by U.S. peers Foot Locker and Dick’s Sporting Goods last month. “The experiences of Foot Locker and Dick’s were not reflected at JD: the U.S. shopper is there for the right product,” Peel Hunt analysts write in a research note.
– DIVIDEND PAYOUT: The company increased its interim dividend to 0.30 pence a share from 0.13 pence a year prior. The hike reflects “the group’s first-half performance, our continued strong cash generation and the board’s confidence in our long-term growth strategy and prospects within the sports-fashion market,” Chief Executive Regis Schultz said.
Write to Christian Moess Laursen at [email protected]
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