If a plodding athlete showed the recent performance of JD Sports (JD.), he or she might be accused of substance abuse. The sports retailer's shares have more than doubled over the past year as brand-conscious youngsters have continued to favour the retailer's sports footwear and apparel.
Like-for-like sales again increased by more than 10 per cent. Beyond this, the retailer continued its pan-European expansion with a net increase of 27 stores - including its largest ever on London's Oxford Street. Since the period-end JD has opened its first two stores in Belgium, and will soon add another in Amsterdam. The continued drive to increase and improve stores costs a pretty penny - capital expenditure rose from £26.3m to £47.7m - but that should be set against a cash balance that topped £100m for the first time.
The dominant sports fashion division accounts for more than 100 per cent of JD's profit. The struggling outdoor unit made a £4.7m loss in the period, down from £6m. Management is confident it has now got a better handle on what was an element of inter-group competition between the Blacks and Millets brands, and hopes to raise margins a little next year.
Analysts at Investec Securities expect adjusted pre-tax profit of £128m in the current financial year, giving EPS of 50p, compared with £100m and 40p in full-year 2015.
| JD SPORTS FASHION (JD.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 898p | MARKET VALUE: | £1.7bn | |
| TOUCH: | 897-898p | 12-MONTH HIGH: | 927p | LOW: 398p |
| DIVIDEND YIELD: | 0.8% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 162p* | NET CASH: | £100m | |
| Half-year to 1 Aug | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 670 | 23.7 | 9.4 | 1.15 |
| 2015 | 810 | 44.7 | 17.6 | 1.2 |
| % change | +21 | +88 | +88 | +4 |
Ex-div: 3 Dec Payment: 8 Jan *Includes intangible assets of £101m, or 52p a share | ||||
