In major news on UK stocks, JD Sports Fashion PLC (GB:JD) shares soared following the company’s FY24 trading update, which reflected on-track profits and an upbeat outlook. The retailer anticipates its profit before tax (PBT) and adjusted items to come within the projected range of £915-£935 million for FY24. The company will announce its annual results for FY24 in May. Post-update, JD Sports shares surged by over 16% as of writing, offering relief to investors grappling with the falling share price.
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In January, JD stock plummeted by 23% in a single day in response to the company’s profit warning for FY24.
Based in the UK, JD Sports Fashion specializes in retailing branded sportswear and fashionwear. Their product range features renowned international brands like Nike and Adidas, as well as their own label brands.
JD Sports Triumphs in a Tough Market
For the full year that ended on February 3, 2024, like-for-like (LFL) sales increased by 4.2%, while organic sales grew by 8.4%. Among its regions, Asia Pacific LFL sales grew by 11.8% for the full year. During the year, JD Sports experienced a 3.6% increase in overall sales revenue, reaching £10.5 billion. Additionally, the company expanded its retail presence by opening 215 new JD stores.
Upbeat Outlook
For Fiscal 2025, JD Sports expects its PBT, excluding accounting adjustments, to be in the range of £900 and £980 million. The company’s performance at the start of FY25 has been in sync with its expectations. Additionally, the company believes trading conditions will improve throughout the year, well-supported by a busy sporting summer season, softer year-over-year comparatives from Q2, and an enhanced product pipeline toward the year’s end.
Is JD a Good Stock to Buy Now?
On TipRanks, JD stock has received a Strong Buy rating, backed by all Buy recommendations from six analysts. The JD Sports share price prediction is 291.3p, which implies an upside of 116% on the current level.
