Trading Update

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:  [phone]

Régis Schultz, Chief Executive Officer

Dominic Platt, Chief Financial Officer

Mark Blythman, Director of Investor Relations

Advisors

Investec Bank Plc - David Flin                                                                                                   Tel: [phone]

Peel Hunt LLP - Dan Webster                                                                                                   Tel: [phone]

FGS Global - Rollo Head, Jenny Davey, James Thompson                                                      Tel: [phone]

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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