Focus on FY25 – Expect 5%-6% cut to consensus FY25 PBT before accounting changes Management has belatedly given FY25 guidance after issuing a profit warning in January post a more promotional peak trading period in the US and a subdued UK performance. FY25 guidance is for an adjusted PBT range of £900m to £980m (company- compiled consensus FY25 PBT is £979m) pre accounting changes. This is based on 6-9% organic sales growth with the top-end of the range assuming a return to a better innovation cycle from the brands. UK profits are expected to be down YoY with c.200 stores to open mainly in Europe and the US. Management has also announced an accounting change and will exclude non-cash amortisation of acquired intangibles from PBT before adjusted items from FY25. This brings it in-line with others and will increase PBT by c.£55m a year, so post the accounting change, the FY25 guidance range is £955 to £1,035m. Current trading remains challenging due to less product innovation and elevated promotions, which we have already heard about from NIKE (N/R), Adidas (N/R) and others in updates over the last month. Q4 UK LFLs down 3.4%, with Europe up 0.9% and North America +2.1%. For completeness, management confirms its FY24 guidance, which was lowered in January to FY24 PBT in the £915-£935m range (consensus £921m), from £1.04bn previously. It opened 215 new JD stores. Q4 LFL sales were up 0.1% and organic sales were up 4.4%. There is no news on the proposed Courir acquisition as yet. Forecast and TP placed under review Shares are down 30% over last 3 months, impacted by January’s profit warning and subdued outlook statements from the global brands and its peers. JD not only has tough comps in 1H25 (1H24 Sports Fashion sales +8.9%; 2H24E 4%), but short term demand concerns over the US and UK consumer are likely to persist until the Autumn at the earliest, in our view