JD Sports Fashion PLC (LSE:JD.) saw its share price increase by 14% in the week ahead of its festive trading update, following solid numbers for other retailers such as Next, and over 25% since an update from Nike just before Christmas.
The FTSE 100-listed sportswear retailer will provide a financial update on the 22 weeks to the end of December.
Its first half results painted a positive picture as the board remained confident of achieving full year profits in-line with a record prior year.
Jonathan Pritchard, investment analyst at Peel Hunt, said: “We believe that the trend seen in 1H has probably broadly continued in 2H and that the update in mid-January will likely be at least solid. The shares however discount bad news, and therein lies a major opportunity.”
Results from Nike were better than expected and the US giant is key partner for the transatlantic retailer.
However, a looming tough economic background means ‘downtrading’ consumers and inflationary costs, both of which could unlace growth.
Long-time chief executive Peter Cowgill also stepped down mid-2022 and replacement Regis Schultz has already indicated his new strategies.
JD Sports sold 15 brands to rival Frasers last month, a decision that aims to "significantly simplify" the company’s focus.
Whether the festive period provided good tidings for the company will be seen.