JD Sports Fashion shares climb on improved sales and higher dividend
Updated
Updated · MarketWatch · May 7
JD Sports Fashion shares climb on improved sales and higher dividend
12 articles · Updated · MarketWatch · May 7
The stock rose about 7% in European afternoon trading after the British retailer reported 2.1% organic sales growth for the year to 31 January and lifted its dividend 20% to 1.20 pence.
JD said North America, which generates about 40% of group sales, improved sequentially and returned to like-for-like sales growth in the fourth quarter despite tough market conditions.
The update offers relief after the shares had fallen about 14% this year, though JD still faces weak discretionary spending and uncertainty around key brand partner Nike's turnaround.
With profits squeezed and a recession looming, is JD Sports' dividend hike a sign of confidence or a risky gamble?
JD Sports bets on Gen Z and a Nike revival. In an economic downturn, is this a winning strategy or a fatal dependency?