Second-quarter sales declined 1.3% on an organic basis to £3.1bn, as double-digit growth in Asia Pacific was more than offset by declines in the UK, Europe and North America. This was largely driven by their core customer demographic struggling with cost-of-living pressures.
Alongside the soft sales performance, elevated promotional activity is expected to continue over the second half, weighing on margins. As a result, full-year adjusted pre-tax profit guidance has been downgraded from £750-850mn to £700-800mn (£780mn expected), while free cash flow guidance maintained at £460-520mn.
£100mn of the ongoing £200mn share buyback programme has been completed.
The shares were down 10.5% in early trading.
Our view
HL view to follow.
JD Sports key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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