Thank you for visiting, don't forget to subscribe by following here if you enjoy our content. We use follow.it to give you maximum control over your news.
Britain’s largest sportswear retailer, JD Sports Fashion, has witnessed its shares tumble to a five-year low after reducing its annual profit forecast amid challenging market conditions. The company now projects profits between £915 million and £935 million, marking a significant reduction from its previous guidance of £955 million to £1.03 billion.
The FTSE 100 company reported a 1.5 per cent decline in like-for-like sales during the crucial November and December period, with intense promotional activity from competitors impacting revenue performance. This announcement marks the second profit warning in just two months for the Manchester-based retailer.
Despite maintaining healthy margins at 48 per cent by avoiding extensive discounting practices, JD Sports has faced mounting pressures from weakened consumer spending and challenges at Nike, which comprises 45 per cent of the retailer’s sales. The company’s footwear division demonstrated resilience, outperforming apparel lines, while growth in European and Asia Pacific markets helped counterbalance softer performance in UK and US territories.
Chief Executive Régis Schultz acknowledged the heightened market headwinds, adopting a cautious stance towards the new financial year. The retailer’s recent acquisitions, including the £452 million takeover of French sportswear retailer Courir and the $1.1 billion purchase of American rival Hibbett, have shown promising initial results despite the challenging environment.
The broader sportswear sector has experienced a notable cooling of demand following the pandemic-driven surge in activewear popularity. JD Sports, with its extensive network of 4,558 shops globally, continues to navigate these headwinds while maintaining its position as a dominant force in global sportswear retail.
The company’s shares closed down 6p, or 6.4 per cent, at 90¼p, reflecting investor concerns about the retailer’s near-term prospects in an increasingly competitive market landscape.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.