City analysts called interim results from fashion retailer JD Sports (JD.) "exceptional" and we're finding it hard to disagree. Suffice to say, the market also shared the brokers' sentiments, sending the share price up close to 5 per cent on results day.
Getting down to the numbers: like-for-like sales across the sports fashion division have grown by approximately 10 per cent, which means underlying growth over the past three years comes in around 42 per cent. The continued demand for 'athleisurewear' has served the business well, and operating profits here grew 53 per cent to nearly £80m.
Expansion abroad is also in full flow, with the stabilisation of the distressed assets purchased from Dutch groups Aktiesport and Perry Sport in March top of the agenda. The group also purchased 12 sites in Portugal in July, 20 more sites in Malaysia from its joint venture partner and 32 sites in Australia. Finance chief Brian Small said the plan is to grow the store estate in Australia, given the market's "clear similarities" to the UK and Western Europe.
Analysts at Peel Hunt have upgraded expectations for the year ending January 2017. The broker now expects pre-tax profits of £205m, giving EPS of 81.9p, up from £157m and 62.1p in 2016.
| JD SPORTS FASHION (JD.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,396p | MARKET VALUE: | £2.72bn | |
| TOUCH: | 1,396-1,398p | 12-MONTH HIGH: | 1,443p | LOW: 873p |
| DIVIDEND YIELD: | 0.5% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 222p | NET CASH: | £231m | |
| Half-year to 30 July | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 810 | 44.7 | 17.6 | 1.20 |
| 2016 | 971 | 77.4 | 29.8 | 1.25 |
| % change | +20 | +73 | +69 | +4 |
Ex-div: 1 Dec Payment: 6 Jan | ||||
