Shares in JD Sports Fashion (JD.) closed down 6.4 per cent on 13 January after longstanding executive chairman Peter Cowgill sold more than half his stake in the business. Cowgill, an accountant by profession, who has been at the helm of the sports retailer for nearly 18 years, sold 10m shares at an average price of 213p a share. He retains a stake of more than 9.7m shares, or 0.19 per cent of the company.
Broker Berenberg said in a note that this latest disposal is in line with a pattern of block sales he has made in recent years for family wealth planning and diversification reasons. He previously sold two significant blocks in June 2020 and in October of the same year.
There is “absolutely no indication” that Cowgill plans to leave, the broker said, although JD Sports remains on the hunt for a chief executive to split the dual role he currently occupies. “We think any concerns over the sale are overdone and would view the weakness as a buying opportunity.”
JD Sports’ share have fallen by 9 per cent so far this year but are up 17 per cent over a 12-month period. Earlier this month, the retailer upgraded its profit forecast for both this year and next, with headline pre-tax profit for the year to 29 January likely to be at least £875m, higher than consensus estimates of £810m. Sales for the 22 weeks to 1 January were 10 per cent higher than the same period a year ago
