Investors in JD Sports Fashion PLC (LSE:JD., OTC:JDSPY) will not have long to wait for the next update: half-year results land on 24 September.
Ahead of that, Citi has nudged up its full-year profit forecast to £906 million, slightly ahead of consensus at £885 million.
The retailer’s like-for-like sales picture remains mixed. Citi sees group sales falling 1.7% this year, a shade better than the 2.2% decline pencilled in by analysts on average.
The weakness is in the home market. UK sales are expected to be down 3% in the second half, worse than the consensus forecast of a 1.7% decline. Asia-Pacific is the bright spot, with a forecast 2% rise in same-store sales against expectations for a fall.
Margins look under control. Citi has a gross margin of 47.7% for the year, 20 basis points higher than before, helped by a restrained approach to discounting online. That underpins the small lift in profit expectations.
JD has already completed a £100 million share buyback and plans another of the same size in the current year. Even so, Citi keeps its “neutral” rating, with a modestly higher target price of 95p.
The shares, which have drifted this year as UK shoppers tighten their belts, will need more than resilient overseas growth to regain their old shine. For now, JD looks like a business steadying itself rather than sprinting ahead.