Shares of JD Sports Fashion PLC (LON:JD) jumped 7.8% on Wednesday, after the sportswear retailer reported Q4 results in line with forecasts and issued a steady earnings outlook for the upcoming fiscal year, despite ongoing market headwinds.
JD Sports stated that pre-tax profit before exceptional items for the 52 weeks ending February 1, 2025, is expected to be within the previously forecast range of £915–£935 million.
Consistent Performance and Organic Growth
The company posted 5.6% organic revenue growth for the fourth quarter and 5.8% for the full year, slightly beating prior expectations. Like-for-like sales growth stood at 0.3% for both periods, matching the company's guidance for stable performance.
CEO Régis Schultz commented:
"In a challenging market, we delivered like-for-like revenue growth of 0.3% in Q4 and 5.6% organic growth, driven by strong performance in Europe."
Strategic Partnerships and Optimistic Outlook
Analysts at RBC expressed confidence in JD Sports' ability to maintain its position as a key retail partner for major brands like Nike (NYSE:NKE) and Adidas (ETR:ADSGN), citing its retail strength and appeal among young fashion-conscious consumers.
For fiscal 2026, JD Sports projects total revenue growth of 14%, including a 10% contribution from recent acquisitions and 4% from new store openings.
Expansion Strategy and Share Buyback Program
The company plans to open around 150 new stores and relocate or remodel about 100 existing locations, while closing approximately 50 outlets, mainly in Eastern Europe.
JD Sports also announced a £100 million share buyback program for the new fiscal year, reflecting confidence in its financial position and future performance.
