JD Sports faces setback despite footwear growth
Sports footwear and clothing retail group JD Sports has revised its profit forecast downwards, citing a challenging fashion market and heavy discounting by rivals ahead of Christmas.
The UK retailer reported a 1.5% decline in like-for-like revenues during November and December compared to the previous year. It now expects annual profits to reach no more than £935 million, below earlier projections of £955 million to £1.03 billion, marking a second consecutive year of missing its billion-pound target.
Shares in JD Sports fell by 10% following the announcement. The company, which owns brands like Size?, Blacks, and Millets, also warned of continued tough conditions for retailers.
CEO Régis Schultz noted that trading in the UK and US was particularly weak, although footwear sales outperformed clothing, and outdoor goods chains performed better than expected despite severe weather disruptions.
Analysts have downgraded profit expectations for the coming year, anticipating the difficult market conditions will persist.
