If you are covering JD Sport’s trading update, please see the following comment from Amisha Chohan, head of small cap strategy at Quilter Cheviot:
“Demand for trainers and athleisure remains buoyant globally, and shows no signs of slowing. JD Sports is in prime position to capitalise on the demand for athleisure, and posted a positive trading statement this morning.
“Like-for-like sales over the pre-Christmas "Golden Quarter" were up more than 10% year-on-year, resulting in a pre-tax profit for the year from January 2021 of at least to £875m, a full 8% ahead of consensus expectations. Management’s guidance for the financial year 2023 has been raised but still remains conservative, in our opinion.
“Many retailers still suffer from the same fragile financial structures they had pre-pandemic and will come under intense pressure. JD Sports, however, is a high-quality business and well-positioned to consolidate the market and with a strong management track record and ‘trusted partner’ relationships with the premium brands such as Nike and Adidas. The path to further growth remains clear for JD Sports.
“Furthermore, in an environment of increasing inflationary pressures, JD Sports benefits from strong pricing power and a younger consumer base.”
