JD Sports Fashion HY revenue falls on weaker footwear demand

By Reuters News


Overview

  • UK sportswear retailer's half-year revenue declined 0.7% yr/yr amid challenging market

  • Adjusted basic EPS fell 13.7% yr/yr as operating profit and margins declined

  • Company raised interim dividend 21% and maintained FY27 profit guidance


Outlook

  • JD Sports maintains FY27 profit before tax and adjusting items guidance of £700m-£800m

  • Company reiterates FY27 free cash flow guidance of £460m-£520m

  • Company expects challenging trading conditions to persist into H2


Result Drivers

  • CONSUMER PRESSURES - Co said cost-of-living pressures and subdued consumer sentiment weighed on sales, especially in North America and Europe

  • FOOTWEAR CYCLE HEADWINDS - Softness in end-of-cycle footwear lines and a highly promotional market impacted sales and margins

  • APPAREL & ONLINE GROWTH - Apparel and accessories sales grew and online sales increased, supported by new e-commerce platforms and omni-channel investments


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

Slight Miss*

GBP 5.90 bln

GBP 5.94 bln (2 Analysts)

H1 Adjusted Pretax Profit

Miss

GBP 282 mln

GBP 296 mln (1 Analyst)

H1 Dividend

GBP 0.004

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

  • Wall Street's median 12-month price target for JD Sports Fashion PLC is GBp95.00, about 20.7% above its September 22 closing price of GBp78.72

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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