JD Sports Fashion raised its full-year profit forecast after revenues rose 10% in the 22 weeks to Jan. 1 as U.S. fiscal stimulus measures also boosted trade.
The sports fashion chain said on Wednesday it expects pre-tax profits of at least £875m compared to previous expectations of £810m after heavy trading over Christmas and Black Friday. He added that the US fiscal stimulus “may have contributed up to £100million to this result”, with consumers spending their government checks at his streetwear retail chains DTLR Villa and Shoe Palace.
Looking ahead, JD Sports said it was “well placed” to meet the challenges posed by the Covid-19 pandemic in Europe and Southeast Asia and global supply chain constraints.
He added that pre-tax profits for the full year through January 28, 2023 would be in line with the current year.
“However, we expect the laddering of earnings in the year to January 28, 2023 to return more to historical norms with around 35% to 40% of annual earnings generated in the first half,” the company said in a statement. communicated. business update.
“In our view, JD Sports remains a premier retailer among our universe of general retailers. The company is tightly managed with excellent cash generation with tight inventory and cost controls,” analysts said. Captain ashoreI.
“Today’s brief statement should reassure investors that the group remains on track as it delivers a year of good revenue and profit growth.”