JD Sports is set to beat full-year profit forecasts following a strong performance in the second half of the year, including the key Christmas period.
The sportswear retailer said in a trading statement that it expects pre-tax profits for the year ending 3 February to be around £300m, ahead of the £270m to £295m predicted by analysts.
It said like-for-like sales – which compares performance across the same stores – rose 3 per cent in the second half of the year as online sales grew and the group continued with its overseas expansion.
In September, the retailer, which was founded near Manchester in 1981 and now has over 1,200 stores, announced record profits for the first six months of 2017.
While the crucial Christmas trading period has proved to be disappointing for many retailers, JD Sports was probably helped by its purchase of camping chain Go Outdoors in 2016, according to Laith Khalaf, senior analyst at Hargreaves Lansdown.
Go Outdoors benefitted from cold December weather as consumers stocked up on warm clothing, said Mr Khalaf.
“The festive season was a test of mettle for retailers, and one which has highlighted the gulf between the strong and weak players in the sector,” he added.
“Performance was [by] no means as stellar as it has been in recent times, but then conditions are tough on the high street right now, thanks to the financial pressure on the UK consumer.”
