Jd Sports Fashion Share Discussion Threads

[cornishman33] 23/9/2009 11:50

Still no interest on these boards, but up another 20p since my last post.

[cwa1] 23/9/2009 08:32

And finally The Times

JD Sports Fashion continues to play in a league of its own. While its rivals JJB Sports and Sports Direct International have spent the downturn constrained by their debt and find themselves embroiled in a price-fixing enquiry by the Office of Fair Trading, JD carries on much as before.

Recession has even enabled it to raise its game. This year, JD took its first steps into continental Europe with the purchase of Chausport, the 76-store footwear chain in France. The deal was struck at a knockdown price - £10 million - and gives JD scope to extend Chausport's reach from northern France into the country's bigger cities further south. More immediately, it will give JD considerably more buying power with the likes of adidas and Nike.

Elsewhere, JD has picked up two of the biggest brands in rugby at bargain levels - buying KooGa and, more recently, New Zealand's Canterbury, for £8 million between them. That opens up an entire new customer base and adds to JD's stable of brands that have strong international appeal. The company said yesterday that it had drawn interest from overseas retailers and wholesalers who are interested in stocking its kit, and it is mulling which territories to enter first and whether through joint ventures or licensing deals.

If there is a disappointment, it was not with yesterday's first-half numbers. At £14.2 million, pre-tax profits in the six months to August 1 were up 14.5 per cent, modestly ahead of forecasts. JD retains net cash - about £6 million - despite its acquisitions, while the dividend was raised 6.5 per cent.

Related Links
Carnival on a rising tide as bookings pick up
Fates smile on Minerva as it refinances loans
In the know: Capita; Cable & Wireless; Nature Group
Rather, it was the evidence of a slowdown in underlying sales that unsettled. Like-for-like gains have dropped from 3 per cent earlier in the year to 0.8 per cent in the most recent six weeks. That performance, combined with gross margins that are slightly below target, meant that current-year profit forecasts were left on hold, a break with recent tradition, whereby JD's results are usually accompanied by profit upgrades.

A change in the mix of brands sold by JD's Scotts fashion chain - which caused it to clear stock - will not have helped. The bigger constraint came from Bank, which is loss-making. It has only 57 stores, implying strong growth potential relative to the 327 run under the JD fascia, but the formula seems in need of more work.

At 594p, up by one quarter since July, the shares have little to drive them higher for now. However, at seven times earnings, neither can they be deemed too steep. Hold on.

[cwa1] 23/9/2009 08:31

The Torygraph

JD Sports

594p -6p

Questor says Buy

JD Sports Fashion is moving away from the sports retail pack.

The chain, which sells sporty casual wear, yesterday said that first-half profit was up by 14pc, ahead of even the most optimistic forecasts. At a time when rivals like JJB Sports and Sports Direct are flagging, JD is leagues ahead.

JD has two distinct divisions – sports and fashion. While the sports arm sells core sports clothing such as trainers and tops, the fashion division comprises clothing chains Bank and Scotts.

Like-for-like sales in both divisions remained positive over the half, a good achievement in the current market.

The sports arm remains central to the company's profitability but the fashion arm has strong growth potential and estimated chunky margins of 45pc.

Sales have slowed slightly since the company's second half started, but the performance is still good.

For the first time, the company has also broken out a new division in its reporting – "wholesale". This covers the sale of brands – such as Canterbury – to third parties.

This will add visibility to the company's earnings. It is expected to take three years to deliver profits to the retailer.

There are a few potential banana skins lurking. Rising unemployment among JD's core customers – 16 to 24-year-olds – might affect sales. But in general this company is firing on all cylinders.

The company is, in Questor's view, undervalued. The shares slipped slightly yesterday after a rally last week.

Trading on 7.6 times next year's earnings, the stock yields 2.17pc. A strong buy.

[cwa1] 23/9/2009 08:30

For those too lazy to follow the links ;-)

Indie

Our view: Buy


Share price: 594p

JD Sports Fashion has been the goody two-shoes of the sportswear sector recently. While rival JJB nearly went bankrupt this year and Sports Direct became embroiled in a potentially damaging price-fixing inquiry this month, JD behaved itself again yesterday by posting better-than-expected pre-tax profits, up by 14.5 per cent to £14.2m in the half-year to 1 August.

The retailer – which unlike its two rivals sells very little sports equipment – attributed the performance to its differentiated business model, which centres on selling clothing and footwear brands across its retail fascias and wholesale operation. JD's portfolio not only covers its popular own-brands Carbrini and McKenzie, but also labels including Sergio Tacchini and Adidas Originals, which it sells under exclusive deals. Furthermore, it has plenty of growth potential, illustrated by a series of recent acquisitions and plans to expand its Bank fashion chain from 50 to up to 250 shops. This summer, it acquired Chausport, the 78-store French sports retailer, and the rugby brands Kooga and Canterbury.

Its shares – despite a strong run this year – trade at a 2010 forward price-to-earnings ratio of 7, a sizeable discount to the retail sector. However, life is currently anything but a walk, or run, in the park for JD. Its total like-for-like sales growth slowed to just 0.7 per cent over the half-year, hit by being up against strong comparables and a squeeze on the spending power of its young customers. JD also said its 38-store Scotts fascia "continues to experience profitability issues with its legacy store portfolio".

But JD has shrugged off the recession and will get a boost from sales of England football shirts during next year's World Cup. And given its good behaviour over recent years, its shares look a safer option for investors than betting on glory for the national squad. Buy.

[cwa1] 23/9/2009 08:29

Some interesting grist for the mill:-







Pretty universal positives :-))

[cwa1] 23/9/2009 07:32

Not exactly a huge target price given the kind words but it's a start.....

[cwa1] 23/9/2009 07:31

Morning All

Broker Charles Stanley initiated its coverage of shares in sports fashion group JD Sports (JD.) with earnings forecasts that are roughly 5% ahead of market consensus. "Our different from consensus view is predicated on the success we think that will start to emerge at Bank, JD's biggest branded fashion business. We think that the stock market has yet to grasp the significant opportunity offered by Bank," commented the broker. Even based on the less optimistic consensus earnings estimates the shares are cheap, the broker argued. Charles Stanley is forecasting pre-tax profit for JD of 58.1 million pounds for the current year. "JD should theoretically be valued at least in line with the retail sector forward P/E multiple (13x based on consensus estimates) to reflect the fact that JD has a secure, differentiated customer proposition (particularly well developed in footwear), a convincing profits growth story, and a strong financial position," added the broker. The shares, for which the broker has a 650p price target, finished 6p lower at 594p.

[cockneyrebel] 22/9/2009 18:18

78p this year, 84p next year.

H1 adjusted EPS was 18.97p, 3.5p higher than last year. Just a flat H2 with H2 last year would give nearly 76p eps.

CR

[scotchbroth] 22/9/2009 14:23

Consensus eps forecast before today was 78.05p. Will probably be upgraded though.

[luchan] 22/9/2009 13:24

Chaps,

is the EPS forecast still 70p+ as per header?

luchan.

[strutt12] 22/9/2009 11:45

Never fails, Buy the rumour sell the fact :-)

[letsgetbizzay] 22/9/2009 11:26

3 year chart indicated double top - couldn't break through 600

[touch2002] 22/9/2009 11:11

Been a holder for a year now, but sold mine today (oddly not gone through) - steam seems to have come out of the lfls and on an ev/ebitda basis it is no longer looking a raging buy.

Good luck to remaining holders.

[letsgetbizzay] 22/9/2009 08:31

Pushed back down :( spread first thing was ridiculous, perhaps they were trying to discourage buying. I suspect this will finish a lot higher...

[cockneyrebel] 22/9/2009 08:09

breaking out to an all time high here.

CR

[cockneyrebel] 22/9/2009 07:44

0640 GMT [Dow Jones] JD Sports Fashion's (JD.LN) 1H earnings report comes in ahead of expectations, with revenue increased by 8.4% and by 0.7% on a like-for-like basis, says an analyst. Thinks the dividend increase by 6.5% to 3.30p is encouraging. "The company has reaffirmed full year targets which should reassure the market," he adds. Shares closed at 600p Monday. (ISD)

[cockneyrebel] 22/9/2009 07:34

Great results - PE about 7.5 - on half the vasluation of Sports Direct imo.

Way too cheap imo.

CR

[cwa1] 21/9/2009 16:38

Fingers crossed now.............

[cambium] 21/9/2009 16:26

you can get in for less that the £6 now

[cockneyrebel] 21/9/2009 16:22

£6 on the ask, doesn't get nearer to a breakout than that :-)

CR

[cockneyrebel] 21/9/2009 15:53

Buyers piling in ahead of tomorrow's results

CR

[cornishman33] 18/9/2009 19:35

Obviously not a popularly held stock, but I took a punt on these at the beginning of the month and have been pleasantly surprised. Now up 70p since my purchase. With the interims out on Tuesday I'm hoping for some more positive action.

[cockneyrebel] 18/9/2009 13:17

Well results Tues, 7 brokers covering, all saying buy.

CR

[daz] 12/9/2009 21:00

Yes, plenty to go from here with EPS forecasts of 78 for 2009 and 83 for 2010, should get to 700p I would have thought.

They look like they've played a blinder making acquisitions in the depths of the recession.

[cockneyrebel] 12/9/2009 11:37

Given a 'Keep Buying' in SCSW today again.

CR