MARKET REPORT: JD Sports to open 1,750 stores within five years
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Shares in JD Sports skyrocketed after the ‘King of Trainers’ unveiled major global expansion plans.
JD said it would spend nearly £3 billion opening as many as 1,750 stores over the next five years.
Boss Regis Schultz, who took over in September, hailed “a new chapter” of growth and expressed his ambition to tap into markets where it is not yet as competitive. Much of the investment will be in the US and across Europe.
JD aims to generate £1 billion in cash each year through its operating activities. Shares rose 11.2 percent, or 18.2 pence, to 181.5 pence.
The London stock market moved higher on hopes that interest rate hikes would come to an end soon.
Expansion plans: JD Sports said it would spend nearly £3bn over the next five years opening as many as 1,750 stores
The FTSE 100 was up 0.76 percent, or 59.05 points, to 7820.16 and the FTSE 250 was up 3.6 percent, or 716.15 points, to 20614.69.
The rally brought the blue-chip index closer to the all-time high of 7877. Meanwhile, the second tier recorded its best performance since August. Builders took profits hoping that borrowing costs could now be at or near a high.
Persimmon rose 8.6 percent, or 125.6p, to 1531p, while Taylor Wimpey added 6.7 percent, or 7.9p, to 126.5p and Barratt rose 4.4 percent, or 20.4p, to 484, 1p.
The rally also lifted consumer stocks, with Asos jumping 10.2 percent or 90.5p to 982p. Currys rose 12 percent, or 8.4 pence, to 78.2 pence and mall owner Hammerson rose 9.7 percent, or 2.58 pence, to 29.21 pence.
Shares of Wizz Air soared after the plane carried more than 4 million passengers last month, up 73.1 percent from a year earlier. It increased by 8.4 percent, or 223p, to 2875p.
And Bunzl, which supplies paper napkins and latex gloves to the private and public sector, among other things, extended a contract with the American retail giant Walmart. It increased by 2.9 percent, or 86p, to 3066p.
GSK rose 0.6 percent, or 7.8 pence, to 1427.4p when US regulators approved its tablet for adults on dialysis living with anemia due to chronic kidney disease.
Pearson added 2.6 percent, or 23.8 pence, to 935.4 pence after it struck a deal to conduct English tests for immigrants moving to Canada.
Investors in Essentra cheered after the parts division unveiled plans to return £150 million to shareholders – a special dividend of £90 million alongside a share buyback of around £60 million following the sale of the company’s filters and packaging divisions. Shares gained 8.7 percent, or 19p, to 238p.
NCC Group fell 4.5 percent, or 8.2 pence, to 176.2 pence after the cybersecurity specialist warned of slower revenue growth this year.
Sales rose 10.2 percent to £176.6 million in the six months to November. But it forecasts single-digit sales growth for 2023.
NCC also said it wanted to cut its workforce by 7 percent. The group, which employs about 2,500 people, said most jobs will be cut in the UK and North America.
Miner Anglo American made progress ramping up production at a mine in Peru, which produced more than 80,000 tons of copper in the three months to December.
Copper production increased by 52 percent to 244,300 tons during that period. It also increased production of rough diamonds, coal for steel making, and iron ore. Shares were flat at 3387p.
Meanwhile, Cranswick cashed in on families spending more on Christmas meals.
The meat producer reported strong trading during the 13 weeks to December 24. Shares were up 4.2 percent, or 132p, to 3272p.
Engineer Renishaw gained 6.7 percent, or 260 pence, to 4132 pence after a record six-month turnover. Sales rose 7 percent to £347.7 million in the six months to December.
Profits fell 5 percent to £77.8 million. It forecast year-end sales of between £690m and £730m, alongside profits of between £140m and £165m.
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