Disposal of Footasylum in the UK for £37.5m to Aurelius Group’s private equity business. The disposal was in accordance with the CMA’s decision to prohibit its acquisition by JD. We believe the price achieved was reasonable given that JD was a ‘forced seller’. JD acquired Footasylum for £90m in 2019. No change to company’s FY23 underlying headline PBT guidance for FY23’s PBT to be flat YoY with FY22 PBT of £947m (INVe £958m; FactSet consensus £958m). The sales/profit of Footasylum, at just over £200m/£10m in FY22, are immaterial given the scale of the JD Group. No change to INVe PBT forecast, which looks firmly underpinned, though we have adjusted the divisional splits to reflect the disposal. Next news will be 1H results in mid-September, date yet to be confirmed. We forecast 1H23E PBT of £370m. Management guided to an H1:H2 profit split with H1 having c.35%-40% of FY PBT, more in-line with historic splits. This implies a range of £335m to £383m on FY23 consensus. Management has already reported robust trading for the 1st 5 months of 1H, with total Group LFL sales up 5% (ex the key acquisitions of DTLR and MIG). 1H gross margin is expected to be consistent with last year as promotional activity has been limited. Shares trade on a very undemanding valuation (CY22 PE 10.4x; CY23E 10.0x) with a disconnect, in our view, between the market valuation and JD’s proven track record, the strength of its global proposition and the multitude of exciting long term growth opportunities available to the Group. We believe the increasingly challenging consumer environment is more than discounted, while the appointment of a new CEO in the near future should help restore investor confidence in the story. We see material upside to the share price. BUY.