In This Article:
Investing.com -- JD Sports Fashion PLC (LON:JD) shares jumped 7.8% on Wednesday after the sportswear retailer reported fourth quarter results in line with guidance and provided a steady profit outlook for the new fiscal year, despite challenging market conditions.
The company posted organic revenue growth of 5.6% for the fourth quarter and 5.8% for the full year, slightly exceeding earlier projections. Like-for-like revenue growth was 0.3% for both periods, meeting the company’s forecast of broadly flat performance.
The sports-fashion retailer said profit before tax and adjusting items for the 52 weeks ended February 1, 2025 is expected to be within its previously guided range of £915-935 million. For fiscal year 2026, JD Sports anticipates profit to align with current analyst consensus expectations, excluding potential impacts from proposed U.S. tariffs announced last week.
"At this stage, the outcome of these developments is uncertain. We are in regular dialogue with our brand partners but it is too early to comment on the potential sector impact," the company said in a press release.
JD Sports also said that it expects the trading environment in its key markets to be volatile throughout the year.
RBC analysts have commented on the company’s prospects, stating, "We think that JD Sports should maintain its position as a preferred partner of major sportswear brands like Nike (NYSE:NKE) and Adidas AG (ETR:ADSGN), given its strong retailing skills and ability to appeal to a young sports fashion customer."
The company ended the fiscal year with net cash before lease liabilities on its balance sheet. For FY26, JD Sports expects total revenue growth of about 14%, including a 10% boost from recent acquisitions and 4% from new store openings. However, it anticipates like-for-like revenues to be lower than FY25 levels.
JD Sports plans to open approximately 150 new stores and convert or relocate about 100 existing locations in the coming year, while closing around 50 stores, mainly in Eastern Europe. The retailer also announced a £100 million share buyback program for the new fiscal year.
Related articles
Xi Resumes In-Person Summits Despite Covid Spike in Beijing
Morgan Stanley Says HK Dollar Peg Will Stay, Rebutting Ackman