JD Sports Fashion PLC (LON:JD.) rose as it dropped guidance for its new financial year as all of its stores in the UK, US and Europe are now closed due to the coronavirus pandemic.
In a statement, the sportswear retailer said online sales will represent a “small mitigation” of the losses at the shuttered outlets.
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The FTSE 100-listed firm was due to publish its results for the year to 1 February next month but has delayed them until the second half of May, also to allow “greater clarity” on the impact of the pandemic.
“The combination of a strong balance sheet, net cash resources and the substantial working capital facilities available to the group in its various territories are more than adequate to meet the cash deficiencies,” the retailer said.
"JD’s starting point in terms of balance sheet strength is a very good one: it has about £300m of cash on the balance sheet and facilities for nearly a billion up its sleeve," analysts at Peel Hunt said.
"So longevity is not an issue here but it is for other sports retailers and JD will doubtless emerge from this much stronger."
Shares advanced 7% to 387.71p on Tuesday morning.
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