JD Sports Shares Rise Ahead Of Trading Update — Here’s What to Expect

The Christmas period has resulted in several London-listed retailer stocks rising, and JD Sports Fashion (LON: JD.) is no different, climbing over 13% in the last month.

Despite a 1.37% decline in Monday’s session, JD shares are up more than 10% already in 2023, although it is down more than 34% in the last 12 months.

The sportswear retailer is set to post a Christmas trading statement on Wednesday, and following good numbers from other retailers after the Christmas period, expectations are somewhat positive.

Just before the Christmas period, Nike reported its quarterly results, easily topping expectations and raising its outlook. Nike, a key partner of JD, had success in clearing through its hefty inventory pile. Many see JD Sports' trading statement following a similarly upbeat tone.

In its first half results, posted in September, JD said it continues to see headline profit before tax and exceptional items for the year-end January 28, 2023, in line with the record performance for the year ended January 29, 2022.

“We continue to be reassured by the ongoing resilience in the Group's performance with trade to date through the second half following a similar trend to the first half with total sales in the Group's organic retail businesses tracking around 8% ahead of the prior year after six weeks,” JD said at the time.

However, given the macroeconomic uncertainty, it also remained cautious in its view.

Regardless, at the end of December, Credit Suisse analyst Simon Irwin said Christmas trading held up well for the majority of UK retailers.

While the analyst said in a research note that promotional activity has been relatively modest for most retailers, he said he sees several, including JD Sports and Next, slightly increasing current-year guidance or guiding to the upper end of ranges.

Back in September, analysts at JPMorgan, Berenberg, and Barclays all maintained Buy ratings on JD Sports, raising their price targets.

Although there is still uncertainty regarding the current macroeconomic backdrop and how it impacted consumer spending with JD over Christmas, the indications ahead of its update lean positive.