"JD Sports Fashion (LSE:JD.)We approach that awkward time of the year when fat sports enthusiasts insist on buying their favoured apparel, working on the basis watching sport on TV rather than doing it is good for you. Our thoughts turned to ..."
" JD SPORTS FASHION (LSE:JD.) We approach that awkward time of the year when fat sports enthusiasts insist on buying their favoured apparel, working on the basis watching sport on TV rather than doing it is good for you. Our thoughts turned to ..."
Another set of v strong results despite the much predicted death of retail etc. Mr Mkt another gallic shrug of indifference. Continued v stg track of track record of buying in marginal companies, consolidating them, whilst still building core sports operating margin. So the US acquisition bodes well. Massive buying leverage there. Even without US economies of scale, a v gd company at a v v fair price. Favourable demographics too.
"Having stepped up the profits pace from Â£100 million in 2015 to more than Â£300 million three years later, LSE:JD.:JD Sports FashionÂ showed again today why it remains the high street retailer to beat.Its impressive 26% rise in headline profits to ..."
JD v cash generative. At Jul17 they had £220m net cash on the b/s (after the previous acquisitions). By Jul18, around when this deal will complete, I think they will have enough cash to fund the acquisition (cost £390m) without recourse to debt. They will need a bigger std debt facility to cover working capital & expanded operational needs.
The acquisition has an operating margin of 3%. JD has latterly expanded by international acquisitions, all of which had low operating margins. In the last 2 years for example it has increased by +300 stores (+40%) yet without diluting the sports margin of ca 11%. So it has a good track record in this matter.
Well thats an interesting deal. Now we know what is happening to the cash pile. Not an obvious master stroke. But entry to leading global market with major footprint & infrastructure. Massive buying leverage (co t/o jumping ca +45%). Certainly havent overpaid. All cash deal indicates mgmt bullish this will work. Acquisition in JDs main area of strength: sports goods. Co should remain ungeared.
As I say not immediately transformational. But I think it changes JD from a v gd co at a fullish price, to a v gd co at a fair price.
On a historic P/E of 21. Looks pricey, but OK to buy to keep over, say, 5 years or more. When I first bought this share in 2009 the market cap was about £200 million, now it`s about £2 Billion.
I wouldn`t compare it with Sports Direct. JD Sports is more a trendy fashion shop. Sports Direct sells more sports goods.
Class act. Can't fault this. UK sports most likely at store saturation, but continuing strongly favourable demographics & main competitor (Sports Direct / Mike Ashley) looks somewhat in disarray. Solidly cash generative with in the coming year ca £400m net cash to hand. So can continue to fund (international) bolt ons, preferably in the sports goods segment.
"Statistics demonstrate that share prices typically do better over the six winter months than over usually quieter summer period. Investors able to exploit this anomaly would have enjoyed market-beating returns.According to data from The UK Stock ..."
Broker note here on JD. J.D Sports. Looks VERY Bullish.
<b><i>JDs H1 performance is ahead of expectations and we are
upgrading. Including online sales (now nearly 14% of JDs sales),
LFL remains the envy of most retailers, and profit delivery is
strong, with core margins flat despite various headwinds. Go
Outdoors has started well within the JD stable and we expect
further strong progress from each silo in H2. The shares have
been wrongly derated due to concerns from the US and slowing
athleisure momentum. Todays numbers show that there is
plenty more running in the JD legs yet and we expect a strong
bounce back from 13x PE.
£102.7m of PBT. We were forecasting around £93m, so a £100m+ result was a decent outcome against that number: it sets up a nice upgrade (essentially we are keeping our H2 forecast unchanged and just adding the £m beat to FY numbers). In-store LFL in the core UK JD business was 3% against an eye-wateringly tough comparative. In Europe, the LFL number was 7%, another fine effort given last year (Holland was the toughest market in this half, things were marginally more bearable in Germany). Both of these LFL numbers do not include online sales: they are now 13.7% of UK/Ireland sports fashion sales (up from 11.1%): had LFL been included online, it would have been 6% in the UK and 10% elsewhere. Both of which are striking numbers and on top of the material volume growth that we have seen in the last few years, it gives JD a very strong bargaining position with suppliers. The gross margin was down by just 30 bps in the JD fascia, a good effort given the headwinds, and the net margin was flat, despite the living wage being a factor again. All in all, it was a very strong showing from the core business and we expect continued in-store and online growth in H2, despite the tough comp again. Another 40 stores should open in the period and the pipeline of stores and good people to run them is very much intact.
Outdoors into profit. Blacks and Milletts performances improved, showing LFL growth and lower losses, and the contribution of Go Outdoors ensured that the silo was in the black. The business is starting to work as one: its early days but the buying teams and operations units have begun the discussion on how to move forward. It will be a while before the systems are conjoined, but JDs increased scale in the space should bring about a stronger performance in time A £10m upgrade. It's not difficult to see how our upgrade could be too conservative. JD's trading form remains good across Europe , SUR Dutch losses will reduce in H2 and outdoors should make progress again. However, it's probably right to be a touch cautious given the wider economic background. We certainly don't think the trend towards athleisure is anywhere near played out, and the recent weakness means the shares can now be bought on an early teens multiple, which spells good value to us.</b></i>
"Shares in LSE:JD.:JD Sports Fashion tumbled two months ago following a low-key trading update, prompting us to ask whether the 14% sell-off in shares from record highs was overdone. Now, the tracksuits-to-trainers chain has answered the question ..."
"So, is this a long-overdue "market break"? On Thursday 17 August, the US market indices fell the most in three months due to "political turmoil in Washington", although ructions from a Trump presidency were inevitable.This month has seen the ..."
"How the fortunes of a company can change in just 11 weeks. In April, tracksuits-to-trainers retailer LSE:JD.:JD Sports Fashion was popping the champagne corks, celebrating a record high share price after full-year results smashed expectations.By ..."
Well maybe I wasnt so dumb after all to pull some money out a fortnight ago! But is the IMS a coded profit warning? On balance I think not.
Store openings easily on track. First 5 months JD have net rolled out 75% of my fy projection.
LFL still positive/growth, though presumably (well?) below the recent +10% run rate. Equivalent IMS ly did not give a specific LFL fig, but referred to the Euro 2016 boost.
Strong increase % online will boost operating margin.
Increased international business will boost £ reported t/o & op.
Margin pressure may be a combination of general increased competition + impact fall in £ on sourcing costs. The latter, though significant will be a one off. Margin is really the only possible negative in the IMS.
Looked again at the city expectations. Im not that far apart from consensus, or the view of the new house broker Peel Hunt. Interestingly theyre projecting a major uplift in dy to 8.5p ps which would quintuple the current pay-out, but barely dent the cash pile.
But in the current doomster market the remotest hint of bad news leads to panic selling. For myself I think it will be masterly inactivity.
This is the second stock I have in my portfolio that issued an AGM Statement this morning and which then proceeded to drop by ~10%. Whilst the AGM Statement is cautious, it did not strike me aas being sufficiently negative to cause a drop of this size. Has anybody a guess as to why JD should have dropped so far this morning?
"Scouring the stockmarket for cheaply priced value shares is a strategy with rich heritage and a popular following among investors. But not everyone wants to spend their days digging around for opportunities among distressed stocks and 50/50 ..."
"What further upside is there for this FTSE 100-listed insurer LSE:RSA:RSA Insurance? I initially drew attention at 480p in May 2016 as a turnaround able to re-rate given its "best in class" operating targets and the chief executive buying half a ..."
"LSE:JD.:JD Sports Fashion continued its inexorable rise Tuesday, once again smashing records left, right and centre. Expectations ahead of today's full-year results to 28 January 2017 had already been raised after a bullish trading update back in ..."
I sold this morning at 8.20 am , playing golf all am and didn't want to risk a massive loss.
Price has recovered and no surprise there. What was really in the programme report ?
Queueing to get in, unpaid . Queueing to get out, unpaid. Queueing time taking effect piece rate below nat min wage. Big deal.
A supervisor saying people could be sacked. But in response to what question I didn't here that.
OK, some room for improvement but treating people like s--m ? (oft repeated). Seemed well over the top.
Just read the BBC report into this which says the shares are down 70% this year.
That is very sloppy reporting.as clearly not aware or understanding of the sub-division of the shares.
Let's wait & see if the allegations regarding the warehouse are better founded or not.
The leading sports-fashion retailer delivered an ROE of 28.3% along with an even more impressive ROC of 35% over the past 12 months. The company appears fairly valued with huge earnings growth potential. http://bit.ly/1YwlTpf
"You only have to look to the catwalks and glossy magazines to see that sportswear has become a fashion staple. The currently unstoppable demand for trainers and tracksuits has generated record profits for shop owner LSE:JD.:JD Sports and the ..."
Read Panmure's note on JD Sports Fashion (JD/), out this morning, by visiting https://www.research-tree.com/companies/uk/clothes_%26_apparel/jd_sports_fashion_plc
JDs FY16 PBT of £157m (vs our forecast £156m) has duly beat consensus estimates by 4% as we flagged in our April 12th note, highlighting that forecast risk remains firmly on the upside for the foreseeable future as we see no signs of a slowdown (viz. the outlook statement), albeit we remain very alert to the risks of such a scenario. Multiple FY16 positives to highlight which underpin further progression in FY17; (1) The continued eye-watering LFL sales growth which has driven multiple material upgrades to forecasts throughout 2015 and 2016; (2) The strong cashflow generation and gross margin evolution; (3) The pronounced strength in branded athletic footwear over the past 2-3 years has unequivocally spilled over into clothing, notably in H2FY16 and remains very healthy so far in FY17; (4) continued progression/strength in online; and (5) European growth
Read Panmure's note on JD Sports Fashion (JD), out this morning, by visiting www.research-tree.com
JD reports FY16 results on Thursday April 14th. We expect JD to deliver a sixth consecutive outperformance of consensus expectations over the past year alone. We upgrade our FY16, FY17 and FY18 PBT estimates (partly catching up with history of two positive profits surprise trading updates in quick succession), putting us 5% and 9% ahead of consensus for FY17 and FY18. Forecast risk remains firmly on the upside in our view, driven by a combination of (1) JDs unique positioning in a robust retail sub-sector enjoying strong pricing power (ASPs +5%) and (2) the benefits of numerous JD sales productivity and operating efficiency initiatives which are now manifesting themselves after several years of investment in UK stores (design, visual merchandising and instore digital technology), European store rollout, brand supplier relationship, multi-channel, and infrastructure
" Controversial businessman and football club boss Mike Ashley has just two weeks left as the owner of a @GB:UKX:FTSE 100 sportswear empire. LSE:SPD:Sports Direct, the company he started and in which he still has a 59% stake, will be kicked out ..."
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