Guidance increased to FY22 PBT of at least £900m, from £875m in January A strong end to the year with the positive performance seen over Christmas continuing into January. The upside was mainly Europe where demand was more positive than management was expecting when it last updated. Management was more cautious in January given the level of COVID restrictions in Europe, as January is a big sale month. UK performance is still nicely positive with clothing outperforming footwear. The US market is tougher, as expected, given Nike’s supply challenges and tough comps from last year’s stimulus cheques, as expected. Management has increased FY22E PBT guidance to at least £900m, from £875m previously, and maintains its flat year-on-year guidance for FY23. FY22 results delayed from the previously announced 12th April The complexity of the Group is such that JD Sports has announced it will delay its results to ensure that KPMG has sufficient time to complete its global audit procedure, and to allow the Group to report on the outcome of the divestment of Footasylum with greater certainty. We would not read anything into this given that there are plenty of examples of other listed companies having issues with completing audits on time. Forecasts and TP under review. Valuation undemanding The market valuation on the pre-upgraded forecast (CY22E PE 15.2x) is undemanding, in our view, and does not reflect JD’s strong cash generation nor its long-term growth opportunity. We believe JD is well positioned to deliver sustainable double-digit growth for the foreseeable future. Maintain Buy.