JD Sports said for the 52 weeks ended 28 January 2023 it was “reassured “ with trading in the first three months of the year with growth in organic sales at constant exchange rates of more than 15%.
JD Sports said there was further positive trading in all regions through May with overall growth in organic sales at constant exchange rates in the month of around 8%.
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JD says the moderation in the growth was in line with management expectations and reflects tougher comparatives in the prior year as the supply chain normalised and the availability of product improved.
The positive trends have continued through June in the Group’s businesses in the UK, Europe and Asia Pacific although the growth from these regions is partially offset by the businesses in North America which are experiencing some trade softness.
Last month JD Sports announced plans to acquire French sports brand Courir in a €520m deal.
The group says it still anticipates that the proposed acquisition of the complementary Courir business in Europe, which represents its first acquisitive steps in fulfilling the business’s growth ambitions in underpenetrated markets, will formally close later in the year.
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By GlobalDataCommenting on the results of the AGM, Eleonora Dani and Clive Black, research analysts at Shorecap noted weaker trading updates and consequent downgrades in the sports sector have impacted JD’s share price, resulting in a 20% decline since its Capital Markets Day in February.
Shorecap’s analysts explained: “While conscious of the macro backdrop challenges, we maintain our Buy stance on JD due to its strong structural position: the company’s robust balance sheet allows it to outinvest its peers, particularly in the US market. Furthermore, JD’s recent acquisition of Courir provides the critical mass needed to compete effectively in the European market.”
