JD Sports set for rise in full-year profits as ‘resilient’ customers boost sales

Underlying pre-tax profits slipped 2.6 per cent to £373.5m.

It said it was “acutely aware of how tough the macroeconomic environment is for consumers across the world”, but said its shoppers “remain resilient”.

Shares in the group jumped 7 per cent in Thursday morning trading as it stood by expectations for full-year underlying profits to reach £1.04bn for the year to February 3, with underlying sales lifting 10 per cent in the first seven weeks of the second half.

Around 65 per cent of its annual profit is expected to be made in the second half.

On a reported basis, half-year pre-tax profits rose 25.8 per cent to £375.2m.

Regis Schultz, chief executive of JD Sports Fashion, said: “Looking ahead, our core consumers remain resilient in the face of the ongoing global macro-economic challenges.”

The group has seen sales boosted by the boom in demand for athleisure, while its customer base has so far seen spending hold up despite cost of living pressures.

Half-year sales lifted 8 per cent across the UK and Ireland on an underlying basis, but jumped by 27 per cent in Europe and 15 per cent in North America.

JD Sports added it expects to open more than 200 stores worldwide by January next year.

The firm has been growing rapidly in the US, including adding a flagship store in Chicago earlier this year, and in May it shared ambitious growth plans to open up to 350 shops globally each year, focused in North America and continental Europe.

The British firm also recently agreed to buy France’s sportswear and trainer retailer Courir, for nearly £450m.

Earlier this week, homewares firm Dunelm revealed falling annual profits as it battled rising costs, but also forecast a return to earnings growth in the year ahead.

Dunelm said: “Consumers are still responding to their own cost-of-living pressures and there remains uncertainty as to what this means for discretionary spend.

“Against this backdrop we remain focused on our proposition and ensuring our customer offer is as relevant as ever.”

It said growth over the year ahead would be driven by higher sales by volume, while costs have also started easing, particularly for shipping.