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Few retailers can boast the enviable track record of JD Sports, the ambitious multi-channel ‘athleisure’ business with a fashion-forward offering that combines the major sportswear brands with established own-label ranges. The company’s expanding international footprint is about to be enhanced by a potentially game-changing recently announced US acquisition, which has yet to be reflected in the consensus forecasts.
Companies: JD Sports Fashion Plc
The "king of trainers" is up 8% today after seeing "material growth" in online and overseas sales.
The high street retailer's shares have jumped off the back of their interims today.
Sports retailer's revenues jumped 20% to £970m
JD’s P/E ratio appears reasonable relative to those of other UK retailers of young fashion with international ambitions. However, it is almost twice the level of rival Sports Direct’s (SPD). While there are justifications for a healthy premium, it is likely to act as a brake on the valuation, as will the low dividend yield.
Continued strong trading so far in H2 has led JD to upgrade its full year PBT guidance to c£135m, leading us to upgrade our forecasts by 3.8% from £130m (cons £125m). JD’s prospects look favourable given the ongoing trend towards athletic apparel and footwear, suggesting there may yet be further upside risk to forecasts. However, limited disclosure at a time when divisional and geographic complexity is on the increase makes this difficult to be certain of. With the stock trading on a cal’16 P/E
AMINO TECHNOLOGIES (AMO LN) Starting to rebuild - Buy | CVS GROUP PLC (CVSG LN) Strategically positive corporate news strengthens growth thesis | IOMART GROUP (IOM LN) Underpinned, with upside from further acquisitions | JD SPORTS FASHION PLC (JD/ LN) Continued strong trading drives 3.8% FY’16 upgrade | SIGMA CAPITAL GROUP PLC (SGM LN) Development of PRS begins ahead of schedule
Companies: AFRN CVSG IOM SGM JD/
JD has delivered an excellent first half result, ahead of our forecast – although, it should be noted that in the absence of any performance details having been released in H1, forecast visibility was low. The beat against our estimate stemmed from the core Sports fascias. The combination of operational initiatives and positive end market trends suggests to us that forecast risk could still be to the upside there. Outdoor is still loss making and continues to carry surplus A/W14 stock, but chang
JD has delivered a strong H1 performance, led by the core Sports fascias where we estimate LFL growth to have continued at the rate seen in H2 (i.e. +12%). This is an important achievement signifying strong growth on growth, and confirms that the favourable trend in athletic footwear and apparel is continuing. We have upgraded FY’16 PBT by 13.6% as a result. It is hard to know if this 2-year run rate can be sustained over the seasonal peak, when densities are higher, but if it can then further u
Avon Rubber (AVON LN) | Hill & Smith Holdings (HILS LN) | JD Sports Fashion (JD/ LN) | UDG Healthcare (UDG LN)
Companies: AVON HILS UDG JD/
Although Oxford Street capex will be >10% of JD’s £70m FY budget the use of funds is not excessive. With international aspirations JD needed to raise its profile in London to attract attention from brands and future partners. So whilst securing the lease came at a significant cost, the flagship is a key stepping stone for future development. On the £3m fit-out it should generate a direct return - the store could break-even in Jan’16 and over time could make £1-2m EBIT. The site visit serves as a
Goals Soccer Centres (GOAL LN) Mixed H1 trading update – we downgrade from Buy to Hold | JD Sports Fashion (JD/ LN) New flagship in Oxford Street well worth the capital investment | NCC Group (NCC LN) Finals show strong performance from core businesses | Spirent Communications (SPT LN) Weak first half but Q2 order intake stronger | Summit Therapeutics (SUMM LN) FDA grants Fast Track designation for SMT 19969
Companies: GOAL NCC SPT SUMM JD/
The FTCs decision to challenge Synergy’s merger with Steris has precipitated a sharp fall in the share price to a level we think looks compelling whether Synergy remains independent or not. If the merger completes, then a quick 20%+ return is possible. If not, then we expect Synergy to be more explicit in its growth ambitions, which in turn should lead to forecast upgrades. We therefore move the stock back onto the Buy list.
Applied Graphene Materials (AGM LN) First patent approval secured | Futura Medical (FUM LN) AGM statement shows continued progress | JD Sports Fashion (JD/ LN) Strong start to the year and confidence in meeting FY expectations | MJ Gleeson (GLE LN) FY15 results to be ahead of expectations following strategic land sale | Redcentric (RCN LN) Clean year showcases organic growth | Ten Alps (TAL LN) Extracting value and putting TAL on a growth path | The Innovation Group (TIG LN) £46m contract win wi
Companies: AGM FUM GLE RCN SDG JD/
Companies: AGM FUM RCN JD/
Research Tree provides access to ongoing research coverage, media content and regulatory news on JD Sports Fashion Plc.
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H1'22 Interim Results: Caution Ahead!
Companies: Frontier Developments Plc
Unilever’s bid for GSK’s Consumer HealthCare division is causing a stir, as it seems totally unreasonable. The group was asked to move on portfolio rotation, but definitely not to be so ambitious at the risk of penalising shareholders.
Companies: Unilever PLC
FY21A Results were well flagged in November’s trading update. Today’s announcement reveals the Group is now debt free and reiterates its intention to return to the dividend list in the current period. Shoe Zone has a clear and well-defined plan to transform its store portfolio and grow its digital offer through its shoehub platform, which we believe will deliver a well-balanced retail model that can win market share and drive profitable growth.
Companies: Shoe Zone PLC
Genflow Biosciences, a UK-based biotechnology company focused on longevity and the development of therapies to counteract the effects of aging and diseases associated with advanced age intends to float on the Main Market (Standard). The Company will become the first longevity biotechnology firm to list in Europe. Genflow has raised £3.7m in an oversubscribed placing, conditional upon admission becoming effective. The flotation will value Genflow at approximately £23.4m.
SuperSeed Capital Limited
Companies: RQIH ABDP ACRL HAYD IQG
Accrol has released a trading update highlighting further inflationary cost pressures guiding FY22E adjusted EBITDA to be significantly below FY21A.
Companies: Accrol Group Holdings plc
Companies: Science In Sport Plc
Companies: MJ Gleeson PLC
Games Workshop Group’s (GAW’s) H122 results reflect lower year-on-year revenue growth after a very strong FY21, as expected, with positive comments on new launches, specifically the third edition of Age of Sigmar. Ongoing internal investment to support future growth and new external cost pressures led to a reduction in operating profit pre-royalties, which was more than offset by the notable increase in royalty income. As previously flagged, the shape of our FY22 forecasts has changed to reflect
Companies: Games Workshop Group PLC
Accrol has released H1 results, which are 7% below last year’s level at the adjusted EBITDA level at £5.0m despite significant supply chain disruption and cost escalation. We made our earnings adjustments in the trading update last week but reduce our net debt forecasts by 13% to £23.9m reflecting lower capital expenditure investment. We believe more can be done to reduce this through working capital efficiencies, but we have left our assumptions on this unchanged for now.
Sanderson Design Group (SDG) has announced a trading update for the current financial year ending 31 January 2022 (FY22E). Strong performances, most notably from the group’s manufacturing and licensing activities, have resulted in the Board’s expectation of adjusted profit before tax of at least £12.0m, compared with the £7.1m delivered in FY21. This equates to an increase of at least 70% over FY21. Our upgrade to £12.0m represents a 14% increase on our previous adjusted PBT forecast of £10.6m.
Companies: Sanderson Design Group PLC
Companies: Frasers Group PLC
Trackwise Designs has developed a proprietary, proven technology, IHT, for manufacturing extremely long, flexible circuits that can replace conventional wiring harnesses. This disruptive technology is applicable to many industries including electric vehicles (EVs), medical devices and aerospace. Since listing in July 2018, Trackwise has invested substantially in capacity, acquiring Stevenage Circuits in March 2020 and a new site in Stonehouse in April 2021. The new site is scheduled to commence
Companies: Trackwise Designs Plc