JD Sports Fashion PLC has released its peak season trading update, revealing a 6.0% constant currency organic revenue growth for the 22 weeks to 30 December 2023, with a like-for-like growth of 1.8%. The company expressed that this growth was slightly behind expectations, with apparel revenue being impacted by milder weather and a softer, more promotional peak trading season than anticipated. As a result, the full-year organic revenue growth is expected to be around 8%.
The gross margin rate for the period is in line with last year, but lower than expected due to elevated promotional activity during the peak trading period. Consequently, the full-year gross margin rate is anticipated to be slightly lower than last year. The company also expects certain capital expenditures to be reclassified into operating expenses, impacting the full year, along with lower interest income and dual running infrastructure costs.
JD Sports Fashion PLC estimates that profit before tax and adjusted items for the full year ending 3 February 2024 will be between £915m and £935m. The company remains comfortable with its current inventory position as it approaches the year end. The full-year results will be released in a similar timeframe to last year, with a full-year trading outcome update planned for March, including initial guidance for FY25.
Régis Schultz, CEO of JD Sports Fashion PLC, expressed confidence in the company's strategy and its progress against the five-year strategic plan. Despite increased promotional activity driven by cautious consumer spending, the company continues to grow market share. Schultz highlighted the ongoing investments in the supply chain, systems, and stores, supported by strong cash generation and a healthy balance sheet.
The company's 2024 financial calendar includes a post-year-end trading update in March, FY24 results in May, AGM in June, and H125 results in September. This announcement contains inside information and is now considered to be in the public domain.