Jd Sports Fashion Share Discussion Threads

[stegrego] 28/4/2010 22:12

Great stuff, is well over a bagger for me now.

Onward!

[chector177] 28/4/2010 17:27

WOW!! don't you just love this company. Bought in at 688p on the 12th April. I'm loving the share price move. I guess there will be a pull back after the results but roll on the World Cup.

[daz] 23/4/2010 15:57

Current forecasts are for 03/2011 - 101.70 03/2012 - 108.9 - this years forecast looks to have scope to be beaten with a combination of the world cup/ UK recovery and contributions from recent acquisitions IMO.

Ex cash of 127p the forward p/e is just over 6, which looks too low despite the limited free float.

[tricky1992000] 21/4/2010 10:03

this has got much higher to go, i expect an eps of 100 in a world cup year on top of the continious growth that this company has been experiencing.

[aishah] 17/4/2010 10:40

5 World Cup Winners

[wjccghcc] 16/4/2010 08:14

Is that allowed with the limited free float? Shame if not.

[spob] 16/4/2010 03:57

JD turns on the style
Created:14 April 2010Written by:John Hughman
Even when times are tough, youthful shoppers won't forego their trendy trainers, at least that's what results from JD Sports suggest. Fears that the rise in youth unemployment would hit the trendy sportswear retailer now look misplaced, after it smashed market expectations by increasing underlying pre-tax profits last year by 26 per cent to £67.4m.

Advertising

Even after a busy year on the acquisition front, JD was able to nearly triple its net cash position and push through a bumper dividend increase. The group spent £15.8m on acquisitions, including rugby brands Canterbury and Kooga, as well as sports shoe specialist Chausport in France for £7.9m. The plan is to gradually introduce JD Sports own lines across the 75 strong chain, as well as investing heavily in its fascias. The makeover of its Bank fashion outlets is also ongoing so, after falling by a fifth this year to £22.9m, capital expenditure is expected to pick up again.

However, the increased investment could well be worth the effort, if the strong performance of JD's sports fascias is anything to go by. Over £38m has been spent doing up the sports outlets over the past two years, including 17 major store refurbishments and 14 new openings in the past year. That translated into a 10 per cent increase in total sales for the division, including a £27.7m contribution from Chausport. But a 2.3 per cent like-for-like increase was respectable in a tough market, and improvements to the stores was partly responsible for a better than expected 18 per cent increase in pre-exceptional operating profit achieved by the sports fascias.

Management said that trading in the 10 weeks since the year-end had been encouraging, with UK like-for-like sales up 2 per cent, although it remains wary of "fiscal threats to consumers' expenditure". Broker Investec Securities expects pre-exceptional pre-tax profits of £71m and EPS of 101.3p in the year to January 2011 (£67.4m and 96.3p in 2010).


JD SPORTS FASHION (JD/)
ORD PRICE: 730p MARKET VALUE: £355m
TOUCH: 727-740p 12-MONTH HIGH: 800p LOW: 375p
DIVIDEND YIELD: 2.5% PE RATIO: 8
NET ASSET VALUE: 284p* NET CASH: £60.5m



Year to 30 Jan Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2006 490 3.7 4.9 6.9
2007 531 17.3 21.5 7.2
2008 592 35.0 48.8 8.5
2009 671 38.2 50.5 12.0
2010 770 61.4 88.2 18.0
% change +15 +61 +75 +50
Ex-div: 5 May

Payment: 2 Aug

*Includes intangible assets of £50.1m, or 103p a share



Guide to the terms used in IC results tables.

More analysis of company results


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IC view:
BuyJD's strong cash generation is allowing it to make targeted and sensible investments to improve the business still further. A forecast PE ratio of seven fails to reflect this virtuous circle, and we move our recommendation back to buy.

Last IC view: Good value, 585p, 22 Sep 2009

[davidosh] 15/4/2010 23:00

The company is very close to the mkt cap level where it would enter the FTSE 350 at the next rejig in June too.

[daz] 15/4/2010 21:47

Like this bit from the FT
'...However, it is becoming increasingly unclear why the stock trades at such a discount to its competitors, with a price/earnings ratio of 7.8 times that is considerably lower than the sector average of 13.8'.

Part of the discount can be explained by the limited free float as Pentland hold approx 57% and Sports Direct 12% but even so it looks too big a discount for a company whose record ought to command a premium rating.

[shanklin] 15/4/2010 09:25

Buy rec in the Independent

[mickinvest] 15/4/2010 08:54

Doesn't matter when Easter was in my opinion,the main factor was a good load of us were snowed in or sitting in a warm house for half the trading period as it was bleedin Baltic out there.

Going forward, there is a World Cup this year that will lead to an increase in casual clothing sales and then there will be the countdown to the Olympics.

JD are in the right place at the right time with the right balance sheet compared to some of its competitors.

Thats not to say the shares will go up from here but I think they will outperform the market and it would be a cracking entry point if they were caught up in any general market sell off.

Mick

[tony5000] 15/4/2010 08:42

It's that word "underlying" again - Easter was only 1 week later last year which includes w.e. 11/04/09 (2009) & 03/04/10 (2010) so both of the strong weeks will be included in the comparative with the possibility of the following half term week - i.e. w.e. 10/04/10 being adjusted for comparative purposes - but over the 10 weeks this would have made little difference IMHO.

[shanklin] 15/4/2010 07:49

Tony

Re LFLs and Easter, I think you're misinterpreting what was said in the RNS, which was:

"Trading in the 10 weeks to 10 April 2010 has been encouraging with UK and Ireland retail like for like sales up 2.0% (Sports Fascias 3.0%; Fashion Fascias -3.5%) on an underlying basis taking into account the change in the timing of Easter and school holidays. Although like for like sales are lower, the performance of the Fashion Fascias has benefitted from a 2% improvement in gross margin in the same period."

i.e the LFLs have been adjusted down to take account of Easter being earlier this year

[tony5000] 15/4/2010 07:30

Matt - I would agree for the moment - although the results were good - like for like sales need to be in the region of +2% to +3% for profits to stand still bearing in mind increase in wages, rates, upward only rent reviews, etc. I was also disappointed with current trading over the recent 10 week period in view of the timing of Easter and performance of other retailers.

It also appeared that there have been some problems with the fashion side and management changes were mentioned (like for like sales -3.5% for the 10 week period). As the company intend to roll out the fashion stores the current performance/issues are therefore of some concern.

I also wondered about the amount of cash on the balance sheet - although a positive - should be put to better use - either returned to shareholders or used for earnings enhancing acquisitions. IMHO DYOR.

[matt] 14/4/2010 19:00

Not sure having looked at the statement in more detail and combined with the chart. A little uncertain about which way this will go for a while. Happy to be wrong and the market to re-rate them but if it's a matter of organic growth it appear there is a stand off between like for like sales and margins. Maybe they can find a good use for the cash? Maybe an aquisition?


free stock charts from www.advfn.com

[tricky1992000] 14/4/2010 13:18

I've bought in today, decided that the fundies were too good to ignore, my opinion is that this company is worth in excess of 500 million pounds, based on cash at bank and post tax profit.

so good luck all.

[daz] 14/4/2010 10:13

Looks like traders exiting stage left.

The cash per share works out at 127p, so the shares ex-cash are trading on an historic p/e of less than 7.

Despite the degree of caution in the outlook statement, with like for like sales improving I would guess that forecasts would be around 100p for the current year, with scope to increase the dividend to around 25p, which makes the forward p/e ex-cash around 6, surely that's got to be too low for a well run operation.

[daz] 14/4/2010 08:08

Well pleased with the results. Like for like sales in the new year, when February was affected by the cold weather, look good to me. Has to be a good chance, sales will improve, especially with the world cup coming up.

Good point about the cash Matt, hadn't realised it was such a high proportion

[chector177] 14/4/2010 08:04

what a great morning, already

[matt] 14/4/2010 07:57

Growing margins and bigger cash pile. Take that out of the Mk cap to show the real PE! Nearly 17% of mk cap is cash!

[cwa1] 14/4/2010 07:53

Excellent stuff :-)

[mickinvest] 14/4/2010 07:47

Hopefully link works, rather super results.

· Profit before tax up 61% to £61.4 million (2009: £38.2 million)



· Net cash position at the period end increased to £60.5 million (2009: £23.5 million)



· Expenditure on acquisitions and associated asset purchases increased significantly to £15.8 million (2009: £1.4 million)



· Key strategic acquisitions made in the year included Chausport in France for £7.9 million and the Canterbury of New Zealand companies in the UK, New Zealand (51% interest), Australia, USA, and Hong Kong for £7.0 million



· Final dividend payable increased by 65% to 14.7p (2009: 8.9p) bringing the total dividends payable for the year up to 18.0p (2009: 12.0p), an increase of 50%

[matt] 13/4/2010 08:03

UK retail sales enjoy Easter boost

UK retail sales enjoyed a strong rise last month, according to the British Retail Consortium (BRC), although the increase was helped by Easter shopping.

The total value of sales jumped 6.6% in March from a year ago, while like-for-like sales were up 4.4%.

However, the BRC said sales were not as good when Easter trade was ignored, and prospects remained "uncertain".

A separate survey found that fewer retailers fell into administration in the first three months of the year.

A survey, by financial services firm Deloitte, found 44 retailers fell into administration during the period, down 65% from a year ago and the lowest number for a quarter since 2006.

[matt] 12/4/2010 18:57

Backing the retailer in fashion mad world is like being the shovel seller in a gold rush. Doesn't matter which brands come and go when you sell a great spread and listen to the street.