JD Sports Seen as a Best-In-Class Retailer, Says Shore Capital

JD Sports Seen as a Best-In-Class Retailer

0836 GMT - JD Sports Fashion had an excellent end to the year despite the highly promotional environment in sportswear, Shore Capital's Eleonora Dani and Clive Black say in a research note. The sports-and-fashion retailer is also relatively upbeat for fiscal 2024, guiding for adjusted pretax profit of just over GBP1 billion, which should be supported by global investment, they add. "JD Sports remains a best-in-class retailer amongst our universe of general retailers. The company is tightly managed with excellent cash generation with tight stock and cost controls," they say. Shore Capital has a buy rating on the stock. Shares trade up 4.7% at 147.55 pence.([e-mail])

 
Companies News: 

JD Sports Sees FY 2023 Profit at Top End of Views After Strong Christmas Performance

JD Sports Fashion PLC said Wednesday that it expects to report fiscal 2023 adjusted pretax profit toward the top end of market expectations after it booked a strong performance during the Christmas period.

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J Sainsbury Sees FY 2023 Profit Toward Upper End of Views on Robust Christmas Period

J Sainsbury PLC said Wednesday that it expects to deliver profits for fiscal 2023 toward the upper end of its current guidance following record trading during the Christmas period.

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Barratt Developments 1H Sales Rates Fell; Names Chair Designate

Barratt Developments PLC said Wednesday that its first-half sales rate fell and its order book declined, and named Caroline Silver as chair designate, effective from June 1.

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Topps Tiles 1Q Sales Rose on Positive Christmas Trading

Topps Tiles PLC said Wednesday that performance for the first quarter was robust and driven by positive trading during the Christmas period.

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PageGroup Lowers 2022 Operating Profit Guidance After Tough 4Q

PageGroup PLC on Wednesday lowered its full-year operating profit guidance after tough trading conditions in the final quarter of the year lead to a fall in productivity.

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Darktrace Sees Strong 1H Growth But Cuts FY 2023 Revenue Guidance

Darktrace PLC said Wednesday that it delivered significant growth over the first six months of fiscal 2023, but lowered full-year revenue guidance as the effect of macroeconomic uncertainty on customer growth was greater than expected.

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Direct Line Scraps 2022 Dividend on Higher Weather, Motor Inflation Claims in 4Q

Direct Line Insurance Group PLC said Wednesday that it has ditched dividend plans for 2022 due to higher weather-related and motor inflation claims in the fourth quarter, affecting its underwriting result for the year.

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Reach Expects 2022 Profit Below Views as Revenue Fell After Advertising Drop

Reach PLC said Wednesday that 2022 operating profit will be below market consensus by a mid-single-digit percentage after revenue fell 2.3%, with advertising revenue dropping 15.9%.

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Nightcap 2Q Revenue Rose Despite Rail Strikes; Expects to Meet 2H Views

Nightcap PLC said Wednesday that revenue for the second quarter of the fiscal year rose 61%, despite rail strikes across the U.K. during the key Christmas period, and that it expects to meet management expectations for the second half.

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Standard Chartered Mulling Alternative Ownership for Aviation Business

Standard Chartered PLC said Wednesday that it was exploring alternatives for the future ownership of its global aircraft leasing and financing operation.

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Ten Entertainment Sees Rise in 2022 Sales, Profit at Higher End of Views

Ten Entertainment Group PLC said Wednesday that it expects to report strong 2022 sales growth compared with both the prior year and prepandemic levels, and profit at the upper end of market views.

 
Market Talk: 

Direct Line's Profit Warning Is an Unwelcome Surprise, RBC Says

0835 GMT - Direct Line Insurance Group's profit warning and scrapping of its dividend is an unwelcome surprise, RBC Capital Markets says in a note after the non-life insurer flagged adverse trading conditions in the fourth quarter. The Canadian bank points to "yet another deterioration in motor trading conditions which suggest the turnaround to be pushed out till year-end 2023 at the earliest". Solvency now seen at the lower end of the target range of 140%-180% implies a hit of around 20 points from the effects of 4Q alone, RBC, which rates the stock outperform, says. Shares drop 27% at 169.2 pence. ([e-mail])

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Sainsbury Likely to Face Increasing Competition

0833 GMT - J Sainsbury's update was positive amid a Christmas bumper but competition might intensify, head of markets at Interactive Investor Richard Hunter says in a note as shares fall 2.8%. The U.K. grocer refocus on grocery sales is clearly having an impact, with investment in keeping costs lows hitting back at discounters and increasing like-for-like sales by 12.5% compared to prepandemic levels, Hunter says. However, the general merchandise and clothing sales fall compared to prepandemic levels shows how the landscape is changing, he notes. "With an increasingly pressing economic environment which will test the mettle of consumers and supermarkets alike in terms of costs, the challenges are stark," Hunter adds. ([e-mail])

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Barratt Developments' 1H Weaker Than Expected on Depressed Demand -- Market Talk

0825 GMT - Barratt Developments' first-half business update reflects depressed customer demand, with underlying trading weaker than expected on significant affordability pressures, Citi says. The house builder's overall outlook comments reflect the difficult environment, and the current weakness is likely to weigh on its share value, Citi analyst Ami Galla says in a research note. "The difficult demand conditions may put more downward pressure on pricing into spring and likely to be a key concern for investors at this stage," the U.S. bank says. The difficult conditions are also likely to be noted in other upcoming house builders' updates, Galla says. Citi retains its buy rating and 450-pence price target on Barratt's stock. Shares are down 1.9% at 415.6 pence. ([e-mail])

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JD Sports Likely to Further Strengthen Position in Sector

0803 GMT - JD Sports should continue to strengthen its position as a preferred partner of major sportswear brands considering its strong retailing skills and its ability to appeal to customers, RBC Capital Markets analysts Richard Chamberlain and Manjari Dhar say in a research note. What's more, the sports-and-fashion retailer has runway for growth, with the opportunity to broaden its customer demographic in the U.S. and other regions and to improve its online offering, particularly in Europe, they say. RBC has an outperform rating on the stock with a 150 pence price target. ([e-mail])

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J Sainsbury's 3Q Was Encouraging, Prompting FY 2023 Views Upgrade

0749 GMT - J Sainsbury's 3Q update was positive and FY 2023 expectations were lifted given the robust trading and strong balance sheet, Shore Capital analysts Clive Black and Darren Shirley say in a note. Shore raises its FY 2023 expectations for the U.K. grocer's pretax profit by 6.3% to GBP675 million noting higher 4Q labor costs, while Sainsbury speaks of delivering toward the upper end of GBP630 million and GBP690 million, they say. However, Shore keeps FY 2024 profit estimates unchanged due to the uncertainty around how macroeconomic headwinds will pan out. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

01-11-23 0422ET