JD Sports Fashion (LON: JD.) shares jumped at the open Wednesday after the company said it expects profit before tax for the year ended January 28 to be towards the top end of current market expectations.
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JD revealed that revenues in its organic retail businesses have strengthened in the year’s second half, with total revenue growth for the 22 weeks to December 31 at over 10%, compared with 5% growth in the first half.
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The sportswear retailer described its performance in these businesses through the Christmas period, in stores and online, as “particularly impressive,” with revenue growth over the six weeks to December 31 coming in at more than 20%.
The sales performance means JD now expects its headline profit before tax to be towards the top end of current market expectations, which range from £933 million to £985 million.
At the time of writing, JD Sports shares are up more than 4%, continuing its recent rise, which has seen it gain over 17% in 2023 so far.
Soaring inflation and the cost of living crisis meant retailers were bracing themselves for a tricky holiday period. However, so far, the majority have performed positively.
JD noted that it has been “very encouraged” by the performance of its global outlets, with North America recovering strongly, delivering growth of more than 20% through the second half to date. The company now has 134 stores trading as JD in the US and Canada.
“Our strategic focus on the international and digital expansion of our global premium sports fascias is underpinned by the continued strength of these businesses,” commented Régis Schultz, CEO of JD.
Looking forward, JD estimates its headline profit before tax and exceptional items for the full year to February 3, 2024, will be just over £1 billion.
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