JD Sports expects to surpass market expectations for full-year profit

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Jan 11, 2021
  • JD Sports expects to surpass market expectations for full-year profit.
  • The retailer's performance remained robust in November and December.
  • Sheffield-based SIG plc forecasts narrower losses in fiscal 2020.

JD Sports Fashion plc (LON: JD) expressed confidence on Monday that its annual profit will surpass market expectations on the back of robust digital sales amidst the ongoing Coronavirus pandemic. Market expectations for its full-year profit currently stand at £295 million.

For the 22 weeks that concluded on 2nd January, JD Sports reported a 5% annualised revenue growth in its like-for-like businesses. For the full year, the group added, its outturn was likely to print at over £400 million.

JD Sports’ performance remained robust in recent months

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The owner of prominent brands like Cloggs and Footpatrol said on Monday that trading showed resilience in the fiscal second half. Demand, as per JD Sports, did not dawdle even in the last two months of 2020 when the United Kingdom announced new restrictions to combat the COVID-19 crisis.

According to the Bury-based retailer, its pre-tax profit in fiscal 2022 is expected to see an up to 10% growth as compared to the current year, even if the pandemic pushes its stores again into a temporary closure in the UK and elsewhere.

In an announcement in December, JD Sports said that it acquired Shoe Palace in a cash deal valued at £240.67 million to expand its footprint in the U.S. West Coast.

JD Sports opened more than 8% up on Monday but lost almost half of the intraday gain in the next hour. At the time of writing, the British sportswear retailer is valued at £8.66 billion and has a price to earnings ratio of 45.69.

SIG plc forecasts narrower losses in fiscal 2020

In separate news from the United Kingdom, SIG plc said that it will conclude the current financial year with a narrower loss as demand for building materials recover after months of halt due to the Coronavirus pandemic. The company expects to return to profitability next year in the second half.

In its previous estimate, SIG (LON: SHI) had forecast its loss in 2020 to fall in the range of £57 million to 61 million. On Monday, the Sheffield-based company said that its annual loss will remain closer to the lower end of the expected range.

SIG plc was reported more than 10% up in premarket trading on Monday. At 33.51 pence per share, it has recovered sharply from the low of 16.86 pence per share in the first week of April 2020, when the impact of the COVID-19 crisis was at its peak.

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