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 changes there suggest it is on track for a return to profit in FY17. Overall the business is in good shape and investing heavily both in the UK and overseas. Visibility and disclosure on all the moving parts is low, though, which is why we are currently unable to recommend the shares to new buyers. Maintain Hold.
