Companies Reporting: TUI, JD Sports

Our regular look at the FTSE 350 and other companies reporting from 22 – 26 September.

• TUI charts a steady course despite some summer booking softness
• JD Sports eyes second-half recovery

TUI, Trading Statement, Tuesday 23 September

Aarin Chiekrie, equity analyst, Hargreaves Lansdown: TUI [LON:TUI] heads into next week’s trading update following a strong third quarter. Revenues were up 7% to €6.2 billion and underlying operating profit rose 38% to €321 million, driven by robust performances in its Holiday Experiences and Cruises segments.

• Company Diary: Persimmon, TUI, Aviva

However, the competitive markets and airline operations remain under some pressure, with summer bookings down 2% year-on-year, impacted by heatwaves in source markets and the Middle East conflict. Despite this, management has raised its full-year operating profit guidance to 9–11%, while revenue growth is expected to come in at the lower end of the 5–10% range. This indicates TUI’s managing to keep a tight grip on costs.

Net debt has continued to improve, now at €1.9 billion, and further progress could strengthen the case for a potential return of dividends, but there are no guarantees. The upcoming trading statement should offer greater clarity on year-end performance, and with strong momentum in higher-margin segments, TUI appears well-positioned to meet its upgraded profit target.

JD Sports Fashion, Half Year Results, Wednesday 24 September

Aarin Chiekrie: JD Sports LON:JD. reports half-year results next week. Its recent trading statement showed like-for-like sales falling by 3.0% in the second quarter, in line with market expectations, with all regions except Asia Pacific posting declines.

• JD Sports results: A marathon or a sprint for shareholders ahead?
• UK Stock Market News: Saga, JD Sports, On The Beach

The sportswear retail sector continues to face headwinds from weak consumer confidence, with European markets particularly impacted by difficult comparatives following the boost from the men’s 2024 Euros. The company’s strategic focus has shifted from aggressive expansion to optimising existing operations, particularly integrating US acquisitions like Hibbett, which now makes America JD’s largest market, with 36% of its sales.

Trends in the US are improving and, last investors heard, full-year guidance was still on track. Management expects pre-tax profits of £885 million, weighted to the second half of the year.

For the current week’s reporting diary see our Company Diary page here.

This article has been brought to you in association with Hargreaves Lansdown. All opinions expressed in this article are from the analysts and do not necessarily represent the opinions of The Armchair Trader.

FTSE 100, FTSE 250 and selected other companies scheduled to report