JD Sports has launched a share buyback scheme in a “commitment to continue delivering significant cash returns to shareholders”.
JD Sports said the £200m scheme will start immediately and will involve the purchase of shares with an aggregate value of up to £100m, which is expected to complete no later than the end of July. JD then intends to “enter into arrangements to commence the second tranche of the programme”, also for up to £100m.
Merrill Lynch International will undertake the first tranche of the purchases on JD Sports’ behalf and will make trading decisions independently of the retailer.
Shares acquired will be sold on to JD Sports and will either be cancelled or held in treasury. JD said: “The purpose of the programme is to reduce the share capital of the company.”
Share buyback schemes are common across retail.
Over the recent Christmas period, JD reported growth in North America and the Asia Pacific regions, but performance in the UK and in Europe was poor and sales there slipped.
Chief executive Régis Schultz said then: “Overall sales during the peak period were in line with our expectations, against a volatile consumer backdrop.”
No comments yet