REG - JD Sports Fashion - Trading Update

JD Sports FashionAnnouncement

12/01/2022 07:00

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RNS Number : 1239Y  JD Sports Fashion Plc  12 January 2022

12 January 2022

JD Sports Fashion Plc

Trading Update

JD Sports Fashion Plc (the 'Group') today announces an update on performance
following the Christmas trading period.

Total revenues for the twenty-two week period to 1 January 2022 in the Group's
like for like businesses were more than 10% ahead of the same period in 2020
with an equally positive performance across the Black Friday and Christmas
period. We are also encouraged that gross margins for the second half are in
line with the prior year.

Given the challenges that have prevailed from the COVID-19 pandemic, including
the disruption of the supply chain operations of some of our key brand
partners, this is another extremely robust performance which further
demonstrates the strength of the relationship that our fascias have with their
consumers, the agility of our multichannel operations, the strength of our
operational infrastructure and the resilience of our colleagues.

The sustained positive nature of consumer demand through the second half to
date means that we are now confident that the Group headline profit before tax
for the full year to 29 January 2022 will be ahead of current market
expectations, which average £810 million. It is now anticipated that the
outturn for the full year will be at least £875 million. Management recognise
the benefit from the fiscal stimulus in the United States in the first half of
the year and would estimate that this may have contributed up to £100 million
to this result.

Looking ahead, Management are cognisant of the ongoing challenges with
operational restrictions from the COVID-19 pandemic across Europe and
Southeast Asia combined with the well-publicised short-term constraint in the
supply of inventory from certain brands. However, the Group, with its buying
and merchandising capabilities, its breadth in brands and product assortment
and a deep multichannel connection with the consumer, is well placed to manage
these challenges.

At this time, assuming no further trading restrictions in our most material
markets of the UK and North America, absorbing the additional statutory costs
of employment in the UK and reflecting the benefit that accrued from the
financial stimulus in the United States in the current year, our best estimate
is that the Group headline profit before tax for the full year to 28 January
2023 will be in line with the current year, which is ahead of current market
expectations for the 2023 financial year. We would expect, however, 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.

We intend to provide our next update on trading in the Group's preliminary
results for the year ending 29 January 2022 which will be published on 12
April 2022.

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."

Enquiries:

 

JD Sports Fashion
Plc
Tel:  0161 767 1000

Peter Cowgill, Executive Chairman

Neil Greenhalgh, Chief Financial Officer

Jennifer Iveson, Investor Relations

 

MHP
Communications
Tel:  0203 128 8193

Andrew Jaques

Peter Hewer

Charles Hirst

Catherine Chapman

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