Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Sports, fashion and outdoor brands seller still defying the high street doom and gloom

JD SPORTS FASHION (JD.) 490.9p

Gain to date: 8.8%

Original entry point: Buy at 451.3p, 12 July 2018


Our bullish summer call on globally expanding JD Sports Fashion (JD.) is being rewarded with a rapid 8.8% gain.

And with the sports, fashion and outdoor brands purveyor firing on all cylinders, we’re staying positive on the stock.

Riding the ‘athleisure’ boom among youthful gym-goers and fashion-conscious consumers, Peter Cowgill-led JD Sports continues to buck the wider high street doom and gloom and we’re excited by the overseas potential of the core JD franchise.

Forecast-beating half year results (11 Sep) showed strong sales growth, a 19% rise in pre-tax profit to a record £121.9m and a very promising early showing from the US.

While like-for-like sales growth in UK stores was slightly negative, double digit online growth ensured a positive outcome overall, while in store like-for-like growth in Europe was positive.

The acquisition of US footwear seller Finish Line has given JD Sports a new growth platform across the pond.

For the year to January, broker Peel Hunt forecasts a jump in adjusted pre-tax profit from £307.4m to £345m.

‹ Previous2018-09-13Next ›