October saw a decline in JD Sports sales due to unexpected weather conditions.
- The group’s quarterly revenue showed mixed results, with organic growth but a slight decline on a like-for-like basis.
- UK revenues dipped as mild weather affected consumer demand for seasonal products.
- The company expects its annual profit to hit the lower end of its forecast range.
- A significant expansion took place with the opening of numerous new stores globally.
October presented hurdles for JD Sports as sales figures declined, attributed mainly to unseasonably mild weather that impacted customer demand for autumn and winter attire. This unexpected climatic pattern prompted weakened sales in both the UK and the US markets, crucial regions for the company’s earnings.
The company’s financial performance for the third quarter was a blend of results. Overall revenue fell by 0.3% when assessed on a like-for-like basis, suggesting a challenging comparison to the previous year. Yet, on an organic scale, the revenue increased by 5.4%, highlighting underlying growth.
In the UK, where JD Sports is a significant retail presence, the company experienced a 2.4% drop in like-for-like revenue. This downturn is directly linked to October’s warmer-than-usual weather, which deterred customers from purchasing typical seasonal items.
With these mixed results in mind, JD Sports now anticipates that its profit before tax will settle at the lower end of its initial guidance spectrum of £955 million to £1 billion. The CEO, Régis Schultz, mentioned that while there were strong early sales driven by back-to-school shopping, October’s volatility presented unforeseen challenges.
Despite these obstacles, JD Sports continues its robust global expansion strategy. During the quarter, they added 79 new stores to their portfolio, pushing the total count to 4,541. This includes a significant number of stores acquired in the acquisition of Hibbett in the US, marking an impressive growth trajectory.
JD Sports remains resilient, navigating current challenges with strategic expansion and adaptation.
