JD Sports Sees Profit Beating Estimates on Christmas Spree
JD Sports Opens Dublin Warehouse as Brexit Red Tape Bites
(Bloomberg) --
U.K. sportswear chain JD Sports Fashion Plc said profit before tax this fiscal year will likely beat estimates after shoppers bought more of its wares in the run-up to Christmas.
The retailer expects to earn at least 875 million pounds ($1.2 billion) in the year ending Jan. 29, compared with estimates of about 810 million pounds, it said in a statement Wednesday. The stock surged as much as 4.8% in London trading.
JD Sports, which has stores from Stockholm to Seoul, sells items ranging from Nike sneakers to varsity sweatshirts. Last year, the company said Brexit had severely tested its operations and it would seek new warehouses in the European Union to avoid the hassles of customs checks.
What Bloomberg Intelligence Says:
The continued consumer appeal of sports shoes and the company’s disciplined multichannel retail approach are keeping it ahead of competitors over a broad geographic footprint.
-- Charles Allen, BI retail analyst
Profit next year will probably be in line with this year’s, also ahead of market expectations, the company said.
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