Investors seek update on JD Sports stores + Kingfisher – Daily Business

JD Sports slashed its profits outlook

Sportswear retailer JD Sports recently slashed its profit outlook on continued US weakness amid cost-of-living pressures and delayed back-to-school spending.

Trading in the UK returned to positive like-for-like sales growth in the second quarter, supported by strong sales of football replica kit.

Despite the profit downgrade JD Sports stuck to its free cash flow guidance with the group flipping into a net cash position in early August from a net debt position. This provides it with some cushioning to absorb the pressure from downbeat consumer sentiment, says AJ Bell.

Investors will be looking for clarity on the extent of US promotional activity and margin implications as well as an update on ongoing store closures.

Kingfisher

Tough prior comparatives and a late start to spring dented the DIY group’s first-quarter like-for-like sales growth despite Screwfix continuing to take market share in trade.

Nevertheless, the B&Q and Castorama owner stuck with full-year guidance which implies management confidence of returning to positive like-for-like sales growth off the back of a recovery in ‘big ticket’ purchases.

After nearly seven years at the helm, CEO Thierry Garnier announced in May that he was leaving which introduces uncertainty over succession, and his replacement is likely to face a tough backdrop.

Garnier launched Kingfisher marketplaces and developed the trade business which means the company is less reliant on traditional DIY carried out by individuals.

DIARY

Monday 21 September

Full-year results from Craneware

Tuesday 22 September

Trading statement from Henry Boot

Half-year results from Kingfisher, Smiths

Wednesday 23 September

Full-year results from Renishaw

Half-year results from JD Sports Fashion, Judges Scientific

UK and US composite PMIs for September

Thursday 24 September

Full year results from CVS

Half-year results from Raspberry Pi

#Investors #seek #update #Sports #stores #Kingfisher #Daily #Business