We weren’t expecting an update but it looks ok. Trading performance is very mixed, however, with the core JD Sports business doing very well (like-for-likes up seven per cent), but the ailing fashion division (for example Bank) is down by five per cent like-for-like and gross margins are under pressure in the outdoor business.
JD has reported overall group performance in line with expectations and strong like-for-like sales within UK Sports Retail. It is difficult to make a direct comparison with Sports Direct. However, our sense is that there remains an opportunity to continue to drive both sales and margin, despite the Olympics and Euro 2012 comparatives.
JD Sports reports a similar trend to that seen previously, with Sports performing strongly, offsetting weaker results in fashion and outdoors...fashion continues to be challenging, albeit the five per cent like-for-like is an improvement on the nine week result. Our group forecasts are unchanged. We remain ‘buyers’.