British sportswear giant JD Sports Fashion has seen its shares tumble after warning that annual profits will likely hit the lower end of guidance, following a significant sales decline attributed to subdued consumer demand and unfavourable weather conditions.
The Manchester-based retailer now projects its annual adjusted pre-tax profit to reach the bottom of its £955 million to £1.04 billion forecast range, dampening earlier hopes of breaking the £1 billion barrier. The announcement triggered a sharp 15.5 per cent drop in share price, closing at 95½p on Thursday, marking a 32 per cent decline over the past year.
Chief Executive Régis Schultz highlighted increased trading volatility in October as a key factor in the company’s challenged performance. Despite a robust back-to-school period, the self-proclaimed ‘king of trainers’ witnessed softening consumer demand and elevated promotional activity across its markets.
The company reported a concerning 0.3 per cent decline in sales during the three months to November 2, resulting in a modest year-to-date like-for-like growth of just 0.5 per cent. Regional performance varied significantly, with the UK experiencing a 2.4 per cent drop, while European operations showed resilience with a 3.5 per cent increase.
The slowdown reflects a broader cooling in the activewear sector, which had previously enjoyed unprecedented growth during the pandemic lockdowns. Major supplier Nike’s recent warning of expected revenue decline has added to industry concerns, though JD Sports maintains its strategic position through multi-brand diversification.
Despite current headwinds, JD Sports continues its expansion strategy, progressing with its acquisition of French retailer Courir. With over 4,500 stores across Britain, Europe and North America, the company’s long-term growth trajectory remains intact, even as it navigates challenging market conditions.
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