JD Sports lowers full year profit forecast
JD Sports has cut its full year profit forecast following a 1.5% drop in like-for-like revenue in November and December.
Organic revenue growth in the period was 3.4%
In a trading update for the nine weeks to 4 January, the sportwear retailer said it experienced a challenging and volatile market and increased promotional activity from competitors.
However, JD Sports delivered a like-for-like revenue uplift of 1.5% in December as footwear sales grew and outperformed apparel and stores performed better than online.
Never Miss a Retail Update!Régis Schultz, chief executive of JD Sports Fashion, said: “Considering the current headwinds in the market, we performed well, delivering organic revenue growth of 3.4% across the period, and a strong Christmas resulted in like-for-like revenue growth in December.
“In line with our proven long-term approach, we chose not to participate in what was a more promotional environment in the period than we anticipated, fully maintaining our trading discipline to deliver gross margins ahead of last year, clean inventory and strong cash management.”
The retailer is now expecting its full year pre-tax profit before adjusting items to come in at between £915 million and £935 million compared to a previous guidance of £955 million to £1.03 billion.
Schultz added: “While I am pleased overall with our performance, market headwinds were higher than we anticipated and therefore our full year profit forecast is slightly below our previous guidance.
“With these trading conditions expected to continue, we are taking a cautious view of the new financial year.”
