JD Sports’ annual results are expect to show a 4.2% rise in like-for-like sales as analysts at Peel Hunt predict a 7.2% drop in pre-tax profit, dropping from £991m to £920m.
The retailer confirmed today (28 May) that it would publish its full-year results two days later than planned on 31 May, although it said they would be in line with previous guidance.
The sportswear giant has indicated that a maximum pre-tax profit could be £935m, after it issued a profit warning back in January and lowered its guidance from £1.04bn to between £915m and £935m for the year to 3 February.
At the start of the year, the retailer blamed “cautious consumer behaviour” and milder weather for a “softer” golden quarter.
Ahead of its results, Peel Hunt’s analysts believe it is unlikely that JD Sports will report profits below their forecast range, The Times reports.
Despite this, the analyst argues that JD’s shares are currently “very cheap” at around 121p, given its “solid medium and long-term value”, and therefore give the stock a “buy” rating.
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When sounding a profit warning back in January, JD Sports chief executive Régis Schultz said that its key markets had seen “increased promotional activity” over Christmas, driven by “a more cautious consumer”.
However, he insisted it had made good progress against its five-year plan, including opening over 200 new JD stores in the year.
Last week, the retailer said it was close to hitting one million members on its ‘JD Status’ loyalty programme just seven months after its launch.
As the milestone nears, the business said it is “preparing to reward its loyal members and entice new enthusiasts” with a series of incentives.
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