JD Sports stocks rose more than 4% this morning after the group said its profits were ahead of market expectations.
The retailer has released a Christmas period trading update. It expects its pre-tax profit to be around £400 million. That’s far higher than the average forecast of £295 million.
Total revenue for the 22 weeks ended January 2, 2021 exceeded 5% compared to the previous year as consumers “easily switched between physical and digital channels.”
Going forward, JD Sports said the impact of the pandemic continues to present challenges.
“We are confident that there are proposals to continue attracting consumers throughout this period, but the process of reducing store activity and expanding digital channels with very short notices is a key challenge. Presented. We are grateful to all of our colleagues in different regions who have had to adopt new ways of working,” the retailer said in a statement.
JD Sports said the best current estimate is 5%-10% growth in pre-tax profit due to continued uncertain outlook and the likelihood that UK stores will close until at least Easter. I did.
Last month, retailer stocks surged after buying sportswear brand Shoes Palace in a deal worth $325 million (£243.7 million).
The deal means JD Sports is expanding its presence in other US states, including California, Texas, Florida and Nevada. All transactions are cash, and retailer owner Genesis wins 100% of the stock in both Shoe Palaces.
JD Sports stocks trade 4.68% higher at 890,60 (0850GMT).
