JD Sports has revealed a slump in UK and US sales, missing out on its long-touted £1bn profit target once again.
The Greater Manchester firm’s latest guidance, published today, predicts annual pre-tax profits of around £885million, with a range of £852million to £915million. Revenues in the UK fell by just over 6% as the leisurewear company struggled to beat strong trading last year, when it received a boost from the men’s football team’s final-reaching Euro 2024 football performance.
Industry observers may have hoped the boost to sportswear sales from this year’s Oasis reunion could keep the upward trend moving, but apparently not.
The company said it had invested in cutting prices online amid “tough comparatives”, especially on footwear for women and children.
Although the slide in sales was particularly pronounced in the UK, despite new store openings including the huge new flagship store in Manchester’s Trafford Centre, sales in the US fell 2.3% too, although this was actually better than expected amid the impact of new import tariffs introduced by the Trump administration. Overall, group sales were down 3% in the period, with Asia Pacific the only region to see a positive trend.
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Despite falling sales, shares in JD were up 5% this morning, and the company confirmed it was still on track to produce full-year profits in line with expectations, albeit expectations that have been downgraded from the cherished £1bn mark. The company also announced a £100m share buyback.
Régis Schultz, the chief executive of the retail group, which operates the JD Sports fashion chain globally and also owns the Finish Line and Shoe Palace chains in the US, Sport Zone and Courir in Europe, and Blacks and Go Outdoors in the UK, said: “Across our regions and fascias, in general we see a resilient consumer, albeit very selective on their purchases. We therefore remain cautious on the trading environment.”
He noted an “improved performance” in the US after several product launches were deferred into the second quarter and stronger sales in clothing and online. In mainland Europe and the UK he said there was “a good underlying performance” in clothing and newer footwear lines despite tough market conditions.
