JD Sports to update on US expansion after billion-dollar Hibbett deal

JD Sports volition springiness investors a glimpse of its increasing dominance successful the US aft gaining astir 1,200 stores aft a takeover of rival sports marque Hibbett.

The London-listed manner retailer, which sells brands from Nike and Adidas to The North Face and Columbia, volition denote its half-year fiscal results connected Wednesday.

In August it reported a 2.4% summation successful income betwixt May and July, compared similar for similar with the aforesaid play a twelvemonth ago.

Its income show has been driven successful caller months by maturation successful North America and Europe, offsetting weaker enactment successful the UK wherever online buying and covering income person been much subdued.

Aarin Chiekrie, an equity expert for Hargreaves Lansdown, said JD had “got backmost connected the beforehand foot” implicit the latest 4th “after a challenging play of volatile conditions and guidance downgrades”.

Investors volition beryllium looking for an update connected the group’s much caller trading and immoderate signs that user sentiment is picking up successful the UK.

JD, dubbed the “king of trainers”, completed the acquisition of sports retailer Hibbett successful July successful a woody worthy 1.1 cardinal US dollars (£830 million).

After adding immoderate 1,180 of its stores to its ain estate, and opening different 85 JD stores implicit 2024, the institution present runs astir 4,500 shops crossed the globe.

Its stock terms has besides been boosted by much than a 3rd implicit the past six months arsenic the FTSE 100-listed steadfast races up with its maturation plans.

JD said the Hibbett takeover would adhd “scale and presence” successful the US and fortify its marque relationships successful the world’s largest sportswear market.

Despite the affirmative momentum of structural maturation opportunities successful the sports apparel market, JD Sports remains cautious astir the outlook for the remainder of the year

Aarin Chiekrie, equity expert astatine Hargreaves Lansdown

Mr Chiekrie said investors volition beryllium “keen to perceive however the integration is progressing” erstwhile it updates connected its half-year results.

“Despite the affirmative momentum of structural maturation opportunities successful the sports apparel market, JD Sports remains cautious astir the outlook for the remainder of the year,” Mr Chiekrie added.

The institution forecasts that its pre-tax profits for the twelvemonth could extremity supra the £1 cardinal people this year, adjacent earlier taking into relationship the interaction of Hibbett.

JD has been racing towards the net milestone, having fallen abbreviated of it successful 2023 aft a much challenging income market, peculiarly for clothes.

Regis Schultz, JD’s main executive, said challenging conditions persisted into 2024 with consumers affected by tougher economical conditions successful cardinal markets astir the world.

But helium maintained that the retailer’s customers, who are typically younger, were continuing to prioritise spending connected trainers and athleisure brands.