JD Sports has cut profit expectations for the second time in eight weeks, blaming heavy discounting across the fashion market.
The retailer said it did not expect any growth in sales at established stores during the year and warned that annual profits would be no more than £935m, down from previous hopes of between £955m and £1.03bn.
Shares in JD, which also owns the Size?, Blacks and Millets brands in the UK, fell 10% as it cut forecasts below its previous expectations and warned of a tough economic backdrop for retailers.
Retail assistants say they have to pay a fee if they want to receive their wages within a month. ‘So immoral’: gig economy workers charged fee to get paid quicker Read more The JD Group chief executive, Régis Schultz, said: “With these trading conditions expected to continue, we are taking a cautious view of the new financial year.”
Sales at established stores were down 1.5% in November and December in a “challenging and volatile market that saw increased promotional activity”, as a rise in sales in the final weeks of the year failed to offset a poor November.
Trading in the UK and US was particularly weak, while its stores outperformed its online arm, in contrast with Christmas trading at other listed fashion retailers, such as Marks & Spencer and Next.
JD – which also owns the Finish Line brand in the US and SportsZone and Sprinter in mainland Europe – said footwear sales were up, outperforming clothing, in the final two months of 2024, while the outdoor and camping goods chains outperformed fashion.
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