JD Sports Fashion PLC (LSE:JD.) has upgraded its profit expectations and said it was coping with disruptions to the global supply chain.
The sportswear and trainers retailer said it was confident profit before tax (PBT) for the year ended 29 January 2022 will be at least £875mln, strongly beating market expectations of £810mln.
Over £100mln of the improvement came from the US, it added.
Total sales for the 22-week period ended 1 January 2022 in the company’s like-for-like businesses were over 10% ahead of a year ago with Black Friday and Christmas periods both going well.
JD described it as a “robust performance” given industry-wide supply constraints, which it said reflected its buying and merchandising strengths and its wide range of brands and products.
For the year to January 2023, profits should be flat, it said, which is also better than the previously forecast.
Analyst Amisha Chohan at Quilter Cheviot said the update highlighted JD's prime position in the athleisure market.
"Many retailers still suffer from the same fragile financial structures they had pre-pandemic and will come under intense pressure. JD Sports, however, is a high-quality business and well-positioned to consolidate the market and with a strong management track record and ‘trusted partner’ relationships with the premium brands such as Nike and Adidas, the path to further growth remains clear for JD Sports.
"Furthermore, in an environment of increasing inflationary pressures, JD Sports benefits from strong pricing power and a younger consumer base."
Shares eased 2.4% to 213.6p.