JD Sports reinstates annual guidance as sales recover after COVID-19 disruptions

JD Sports Fashion (LON: JD) said on Tuesday that its performance remained hawkish in recent months as it reopened its stores for the public after months of disruptions due to the Coronavirus pandemic. The company also reinstated its full-year financial guidance on Tuesday.

Shares of the company jumped roughly 10% on Tuesday. At 791 pence a share, JD Sports is now only 4.5% down year to date in the stock market. The £7.70 billion company has a price to earnings ratio of 31.30. Looking forward to investing in the stock market online? Here’s a simple guide to get you started.

JD Sports says it also performed upbeat in the United States

The company attributed an increase in sales to discounts it announced in recent weeks to entice customers back to its stores, and pent-up demand. In July, JD Sports had warned of a significant hit in fiscal 2021.

The largest British sportswear retailer also highlighted on Tuesday that it also performed fairly strong in the U.S. in recent months on the back of robust sales at its namesake brand and Finish Line. JD Sports became the first official sleeve sponsor for Leeds United in August.

At £41.5 million, JD Sports’ profit came in 68% lower on an annualised basis in the six months that concluded on 1^st August. The retailer, however, expressed confidence that headline pre-tax profit in its full-year report will print at a minimum of £265 million. In the previous financial year that ended in February, JD Sports’ adjusted pre-tax profit came in at £438.8 million.

The company’s board decided in suspending the interim dividend on Tuesday to cushion the economic blow from COVID-19.

Chairman Peter Cowgill’s remarks on Tuesday

Chairman Peter Cowgill of JD Sports commented on the financial results on Tuesday and said:

“Retail footfall remains comparatively weak and the recent strengthening of measures in many countries and the subsequent temporary closure of some stores reminds us that COVID-19 remains an ongoing challenge.”

The novel flu-like virus has so far infected more than 350 thousand people in the United Kingdom and caused over 41 thousand deaths. According to the Bury-based company, it might face duties in the upcoming months as the transition period for the UK comes to an end, after its departure from the European Union in January 2020.

JD Sports revealed plans of setting up a properly organised infrastructure for its European supply chain on Tuesday.