REG - JD Sports Fashion - Trading Update

JD Sports FashionAnnouncement

04/01/2024 07:00

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RNS Number : 6458Y  JD Sports Fashion PLC  04 January 2024

4 January 2024

JD SPORTS FASHION PLC

 

TRADING UPDATE

 

JD Sports Fashion Plc (the 'Group'), the leading retailer of sports, fashion
and outdoor brands, today announces its peak season trading update.

For the 22 weeks to 30 December 2023, constant currency organic revenue growth
was 6.0% with like-for-like growth of 1.8%. This was slightly behind our
expectations. Apparel revenue growth was impacted by milder weather from the
second half of September, while the peak trading season, across the market,
was softer and more promotional than we anticipated, reflecting more cautious
consumer spending. We expect full year organic revenue growth to be c.8%.

The gross margin rate for the period is in line with last year. This is lower
than our expectations due to the elevated level of promotional activity during
the peak trading period and therefore we now anticipate the full-year gross
margin rate will be slightly lower than last year. FY24 will also be impacted
by a reclassification of certain capital expenditures into operating expenses,
expected to be £7m, and lower interest income of £8m following the ISRG NCI
acquisition, as well as the previously announced dual running infrastructure
costs.

Therefore, in terms of the full year ending 3 February 2024, we now estimate
profit before tax and adjusted items will be between £915m and £935m.

As we approach the year end, we remain comfortable with our current inventory
position.

The Group's full-year results will be released in a similar timeframe to last
year as we work alongside new auditors. Before then, we plan to release a
full-year trading outcome update in March, including our initial guidance for
FY25.

Régis Schultz, CEO of JD Sports Fashion Plc, said: "We have made good
progress against our five-year strategic plan, delivering global organic
revenue growth of 6% in the period, against very tough comparisons with last
year, and opening over 200 new JD stores in the year. Our key markets have
seen increased promotional activity during the peak trading season, driven by
a more cautious consumer, but we continue to grow market share. We are
confident in our strategy and we continue to invest in our supply chain,
systems and stores, supported by our strong cash generation and healthy
balance sheet."

Enquiries:

JD Sports Fashion Plc
 
                  Tel:  0161 767 1000

Régis Schultz, Chief Executive Officer

Dominic Platt, Chief Financial Officer

Mark Blythman, Director of Investor Relations

 

Advisors

Investec Bank Plc - David Flin
 
              Tel: 0207 597 5970

Peel Hunt LLP - Dan Webster
 
            Tel: 0207 418 8869

FGS Global - Rollo Head, Jenny Davey, James
Thompson
Tel: 0207 251 3801

This announcement contains information which is deemed by the Company to
constitute inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014. Upon the publication of this announcement via the
Regulatory Information Service, this inside information is now considered to
be in the public domain.

The person responsible for arranging the release of this information on behalf
of the Company is Theresa Casey, Company Secretary.

2024 financial calendar

Post-year-end trading update: March

FY24 results: May

AGM: June

H125 results: September

About JD Sports Fashion Plc

Founded in 1981, the JD Group ('JD') is a leading global omnichannel retailer
of Sports Fashion brands. JD provides customers with the latest exclusive
products from its strategic partnerships with the most-loved premium brands -
including Nike, Adidas and The North Face. The vision of JD is to inspire the
emerging generation of consumers through a connection to the universal culture
of sport, music and fashion. JD focuses on four strategic pillars: global
expansion focused on the JD brand first; leveraging complementary concepts;
moving beyond physical retail by creating a lifestyle ecosystem of relevant
products and services; and doing the best for its people, partners and
communities. JD is a constituent of the FTSE 100 index and had 3,377 stores
worldwide at 25 November 2023.

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