Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 01 11T094001Z 1 LYNXMPEJ0A0B7 RTROPTP 4 JD SPORTS OUTLOOK - Business Express
FILE PHOTO: Footwear on display at a JD Sports store in London, Britain, November 17, 2021. Picture taken November 17, 2021. REUTERS/May James/File Photo

JD Sports sees bills-free young shoppers boosting profits


By Sarah Young

LONDON (Reuters) – JD Sports expects young shoppers not yet saddled with household bills to defy the economic gloom and keep buying Nike trainers and other sportswear, after it posted bumper Christmas sales.

The British retailer, which sold 2.6 million pairs of Nike Air Force 1 shoes in the last three months of 2022, forecast higher profits for its current financial year and next, after revenue growth of over 20% in the Christmas period.

The upbeat outlook contrasts with retailers across Europe, such as British clothing chain Next, which are bracing for a tougher 2023 as the surging cost of energy, food and housing leave shoppers with less to spend.

“I think that the buying power of our customer is much higher than it used to be,” Chief Executive Régis Schultz told reporters, referring to the typically younger JD shoppers.

“They don’t have the utility and the rent or the mortgage to pay.”

Encouragingly for other retailers, the group also said supply issues, freight costs and inflation were all normalising, which it expects to support profitability.

The outlook lifted shares in FTSE 100 company 7% to 151 pence, their highest for nine months.

JD said revenue growth over the autumn and winter was 10%, versus around 5% earlier in the year, helped by improving stock availability in the United States, which accounts for about 30% of its sales.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

European stores account for over 30% of JD’s sales, a bigger portion than JD’s home market of Britain, and the company was seeing strong numbers in France, Spain and Italy, Schultz said.

Schultz took over as CEO in September, following a tumultuous period that culminated in the ousting of long-standing executive chairman Peter Cowgill in May.

JD’s market value of 7 billion pounds ($8.5 billion) is more than twice that of Marks & Spencer’s 3 billion pounds and higher too than Sainsbury’s – two stalwarts of British retailing.

For the 12 months to the end of January, it expects profit before tax and exceptional items at the top end of a forecast range of 933-985 million pounds.

It sees profits for the year to January 2024 topping 1 billion pounds.

($1 = 0.8220 pounds)

 

(Reporting by Sarah Young Editing by Kate Holton and Mark Potter)

 

Recent Post: