JD Sports faces challenges as profits are expected to be at the lower end of guidance.
- Sales for JD Sports dropped in the third quarter due to increased trading volatility in October.
- Group revenues saw a slight decline, with a notable drop in UK sales.
- Despite a successful back-to-school period, JD Sports encountered softer demand towards the end of the quarter.
- The company expanded its global footprint by opening 79 new stores during this period.
JD Sports has announced that its full-year profit will likely fall at the lower end of its forecasted range of £955 million to £1.035 billion. This adjustment is attributed to a challenging trading period in October, which the company described as ‘volatile’, particularly impacting its performance in North America and the UK.
While the group’s overall revenues declined by 0.3% over a 13-week period ending on November 2nd, UK sales were particularly affected, registering a 2.4% decrease. The decline followed a period of strong back-to-school sales which eventually gave way to softer consumer demand. The company noted that this shift in consumer behaviour was influenced by heightened promotional activities, unseasonable weather conditions, and a cautious consumer base.
Despite these challenges, JD Sports made substantial strides in its long-term growth strategy. The sportswear retailer successfully opened 79 new stores globally during this period, taking the total number of new store openings this financial year to over 180. CEO Régis Schultz highlighted the company’s ability to navigate this volatile market by maintaining commercial discipline and improving gross margin by 0.3 percentage points, while still achieving a 5.4% growth in organic sales.
JD Sports had previously experienced record sales and profit growth in its first half of the year, demonstrating resilience in an otherwise turbulent retail environment. Schultz’s strategic vision continues to guide the company through fluctuating market conditions, focusing on robust expansion and financial stability.
JD Sports remains focused on strategic growth despite market volatility affecting its profit forecast.
