JD Sports posts record numbers once again

Tuesday, 11th September 2018 09:20 - by Rajan Dhall

JD sports bucks the High St. trend by posting another set of record results this morning. UK sales are still strong but it will be interesting to see how this market will take the guidance as it remains in line with previous rhetoric. Below is a summary of the report:

·      Another record result for the half year with Group EBITDA increased by 26% and profit before tax increased by 19%

·      Encouraging total like for like sales* growth of more than 3% achieved against a backdrop of widely reported retail challenges in the UK

·      Profitability in the core* UK and Ireland Sports Fascias further enhanced with margins increased

Peter Cowgill the executive chairman commented saying "The Group continues to make excellent progress with the profit before tax for the 26 weeks ended 4 August 2018 increasing by a further 19% to £121.9 million. The increase in the operating profit of £20.6 million to £123.9 million includes a contribution of £4.8 million from Finish Line in the seven week period post acquisition.

''We remain confident that we are well positioned to deliver an outturn in line with current market expectations which, including a part year from Finish Line, range from £337 million to £345 million and we also remain encouraged by our prospects for future growth."

Looking at the daily chart the market has been pretty bearish leading to the update (only for the last few sessions). It is always a worry for me that when the guidance is not upgraded. Nevertheless, it is a good report and the numbers are strong and losses could be capped at the 461p support. The chart is showing a clear uptrend and this may well continue over a longer-term horizon but on the medium term, it's hard to keep this kind of momentum when investors expect soo much.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.