18 May 2022

JD raises profit targets again despite footwear shortages

JD raises profit targets again despite footwear shortages

JD Sports has lifted its profit forecasts again on the back of strong sales despite shortages of key footwear lines.

The retailer saw shares lift higher after it said it was “reassured” by trading over the 14 weeks to May 7.

It reported like-for-like sales for the period had been more than 5% higher than the same period last year.

JD Sports added the sales growth came despite “a backdrop of a global shortfall in the supply of certain key footwear styles” amid continued pandemic restrictions in major regions for production.

Nevertheless, the firm said it expects this to improve progressively during the year.

The retailer told shareholders it therefore expects pre-tax profits for the year to January 29 will be around £940 million.

JD Sports had already increased its profit target to at least £875 million for the year in an update in January.

The group added that although recent trading has been positive, it is still wary of the uncertain economic backdrop.

The company said in a statement: “Whilst we are pleased with the trading to date, which is at least in line with the group’s expectations, we remain conscious of the headwinds that prevail at this time, including the general global macro-economic and geopolitical situation.”

Eleonora Dani, equity analyst at Shore Capital, said: “The company is tightly managed with excellent cash generation, tight stock, and cost controls.

“Today’s statement should reassure investors that the group remains on track as it delivers a year of good growth in revenues and earnings.

“We believe that the shares will run in relief today on the back of another profit upgrade.”

Shares in the business were 2.7% higher in early trading on Thursday.

To continue reading this article for FREE,
please kindly register and/or log in.

Registration is absolutely 100% FREE and will help us personalise your experience on our sites. You can also sign up to our carefully curated newsletter(s) to keep up to date with your latest local news!

Register / Login

Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.

Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.