JD Sports ups profit outlook after ‘impressive’ festive sales

Retail chain JD Sports Fashion has said annual profits will be towards the top end of expectations after cheering festive sales growth of more than 20% and its highest-ever weekly trading in the run-up to Christmas.

The chain said the performance in the six weeks to December 31 was “particularly impressive” across both stores and online, helping it notch up total sales growth of 10% in the 22 weeks so far of its second half.

This compared with growth of 5% in the first six months and puts it on track for double-digit growth for the full-year.

JD Sports said it now expects group underlying pre-tax profits for the year to January 28 to be towards the top end of market expectations, which range from £933 million to £985 million.

It said: “The ultimate outturn will, however, reflect trading through the remainder of January, with the post-Christmas sale period still to take place in some of our most important European markets.”

It also guided for underlying profits to edge up to just over £1 billion in the next financial year.

Regis Schultz, chief executive of JD Sports, said the group had been able to keep a lid on price hikes, with a small increase thanks to easing supply chain disruption and shipping costs.

He added the the group continues to be sheltered from the wider cost-of-living impact on spending thanks to the younger profile of its shoppers and a resilient jobs market.

He said: “Our consumer is young … they don’t have the utility or the rent or the mortgage to pay.

“There’s a very volatile economic outlook, but we believe we have the best proposition to enter 2023.”

JD said its North American business recovered strongly and saw growth of more than 20% across the second half so far.

Its businesses across the UK and elsewhere internationally have “maintained their first-half momentum, both in stores and online”, according to the group.

JD said this was “reassuring and demonstrates the ongoing resilience of our proposition”.