Tuesday, November 5, 2024

​JD Sports reports higher sales amid global expansion​

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​​​JD Sports reports higher sales growth in Q2 trading update

​Athletic retailer JD Sports has announced increased sales globally following the opening of 85 additional stores this year. However, the company cautioned that the retail landscape remains “unpredictable.”

​In its second quarter (Q2) trading update for the 13 weeks to 3 August 2024, the British sports-fashion retailer said that like-for-like sales were up 2.4% compared to the same period last year and organic sales growth by 8.3% in Q2. Sales at stores open for at least one year, which does not include new stores, also grew.

​Growth was powered by North America and Europe. In contrast, year-over-year (YoY) sales in the UK slipped 0.8%. The company cited a decline in both apparel and online sales as negatively impacting UK performance.

​JD Sports attributed its stronger success largely to its “multi-brand” business model and the fact that sales were weaker last year, making growth comparisons more favourable.

​CEO Regis Schultz emphasised that demand remains high for sneakers and casual clothing among the company’s younger consumers. Additionally, the company enjoyed a boost from sales of replica jerseys and fan gear during the 2024 European football championship earlier this year. Schultz shared that sales of licensed products grew 35% over the previous Euro tournament and that the retailer sold nearly as many Scotland jerseys as England kits this year.

​Since January, JD has brought its global store count to over 4,500 with 85 new store openings. Its acquisition of US athletic brand Hibbett for $1.1 billion further expands its American presence.

​JD Sports’ management economic outlook

​JD Sports management was careful to note that the “worldwide macroclimate remains unstable.” Consequently, the company said it continues to be cautious in its outlook for the remainder of 2024.

​Schultz clarified this largely relates to the competitive athletic retail landscape, which has compelled many brands and sellers, including JD, to offer more promotions and discounts than usual.

​Still, JD Sports is maintaining its projected pretax profit of between £955 million and £1 billion for this fiscal year.

​Analyst ratings for JD Sports

​LSEG data & analytics shows a consensus analyst rating of ‘buy’ for JD Sports: 4 strong buy, 6 buy and 4 hold, with an upside target at 165.57 pence, a 22% rise from current levels (as of 22 August 2024).

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