JD Sports Fashion plc, the Bury-based FTSE 100 retailer, said sales rose for the latest quarter, helped by strong US and European sales. It left its guidance for the full year unchanged.
The company reported like-for-like sales growth of 2.4% and organic sales growth of 8.3% in the 13 week period to 3 August.
“In particular, we saw double-digit organic sales growth in North America and Europe, supported by the continued success of our JD store rollout programme,” said CEO Régis Schultz. “We completed the acquisition of Hibbett, Inc. just before the period end and we look forward to its contribution to the growth and development of our US business in the coming years. Based on our first-half trading, we remain on track to deliver profit within our full-year guidance.”
Regionally, like-for-like sales growth was strongest in North America, up 5.7%, and in Europe, up 3.0%. UK sales fell 0.8%.
During the first half of the financial year, JD said it opened 85 new JD stores, which along with the Hibbett acquisition and disposal of non-core stores, left it with 4,506 stores, up 1,189 from the start of the year.
“The global macro environment remains volatile and so we continue to be cautious on our outlook for the rest of the year,” the company said. “Notwithstanding this, based on our first half trading and allowing for an anticipated c.£15m headwind at current exchange rates due to a stronger pound, we are maintaining our guidance range of profit before tax and adjusting items of £955m to £1,035m, on a pre-Hibbett basis.”
Richard Hunter, Head of Markets at interactive investor, said: “This is an unquestionably strong second quarter showing from JD, underpinned both by its multi-brand offering and the geographical diversification of its business.”
“Such diversity allows for some parts of the business to pick up where others are faltering, as seen earlier in the year as UK sales dipped while the likes of Europe and North America blossomed.”
“The company retains a cautious outlook due to the uncertainties of the current economic environment and will take a small hit from the recent strength of sterling when its earnings are repatriated from overseas.”