JD Sports raises profit forecast to £875m
Profit is expected to ‘revert more to historic norms’ in the next financial year.
JD Sports Fashion Plc has raised its pre-tax profits forecast to an average £875m for the full year to 29 January 2022, compared to the previous expectation of £810m, due to “sustained” consumer demand through the second half of the year.
Additionally, total like-for-like revenues were more than 10% ahead of the same period in 2020, with a “positive performance” across the Black Friday and Christmas period.
JD said that the benefit from the fiscal stimulus in the United States in the first half of the year may have contributed up to £100m to this result.
However, the company expects that the phasing of the profit in the year to 28 January 2023 will “revert more to historic norms” with approximately 35% to 40% of the annual profit being generated in the first half.
The announcement reportedly follows challenges resulting from Covid-19, including the disruption of the supply chain operations of key brand partners.
Looking ahead, the company said it is “well placed” to manage the ongoing challenges with operational restrictions and supply of inventory across Europe and Southeast Asia due to the pandemic.
Peter Cowgill, executive chairman, said: “The commitment of our colleagues is crucial to our success and I would like to thank everyone in our various businesses for their significant contribution in delivering this outstanding performance.”
