Shares of FTSE 100-listed JD Sports Fashion PLC (GB:JD) surged nearly 9% as of writing after it reported like-for-like Q2 sales growth of 2.4%, compared to a decline of 0.7% in the first quarter. Meanwhile, it reported organic sales growth of 8.3%. The company attributed this growth to its strong business model, which includes multiple brands.
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JD Sports Fashion is a retail company that specializes in sportswear and fashion. The company offers products from global brands like Nike (NKE) and Adidas (DE:ADS), in addition to its own label brands.
JD Sports Reports Growth Across All Regions
Regionally, North America registered the strongest like-for-like sales growth at 5.7%, followed by Europe at 3%. This improved over the like-for-like sales growth of 2% in North America and 1.6% in Europe in Q1.
The UK showed a significant improvement with just a 0.8% decline in Q2, compared to a larger decrease of 6.4% in the previous quarter.
JD Sports Maintains Cautious Outlook
Moving ahead, JD Sports maintained a cautious outlook for the second half of FY25. The global sports fashion industry is experiencing a slowdown this year, especially in the U.S. Bigger brands like Nike and Adidas are clearing out their inventories with huge discounts.
Despite challenging trading conditions, the company has increased its full-year guidance. It expects its profit before tax and adjusted items to range between £955 million and £1.035 billion for FY25, up from £971.2 million in the previous fiscal year.
Is JD Sports a Good Share to Buy?
Year-to-date, JD stock has lost over 13.4%. On TipRanks, JD stock has received a Moderate Buy rating, backed by four Buy and two Sell recommendations from analysts. The JD Sports share price prediction is 141.2p, which is 1.02% above the current level.
