Companies

Trading update from JD Sports

Jan 4, 2024 United Kingdom

The UK-based sports retailer has issued a trading update for the 22 weeks to the end of December that is “slightly behind” prior expectations due to weaker consumer demand

JD Sports recorded organic revenue growth of 6.0% at constant currency with like-for-like growth of 1.8% in the 22 weeks to the 30^th of December, as compared to the same period of last fiscal year, which it said it was “slightly” below its expectations.

“Apparel revenue growth was impacted by milder weather from the second half of September, while the peak trading season, across the market, was softer and more promotional than we anticipated, reflecting more cautious consumer spending”, it added.

In addition, the company’s gross margin rate in this period was in line with last year, but below expectations due to the increased level of promotional activity during the peak trading period.

“We have made good progress against our five-year strategic plan, delivering global organic revenue growth of 6% in the period, against very tough comparisons with last year, and opening over 200 new JD stores in the year. Our key markets have seen increased promotional activity during the peak trading season, driven by a more cautious consumer, but we continue to grow market share”, commented Régis Schultz, CEO of JD Sports Fashion.

For the year ending on the 3^rd of February 2024, JD Sports expects organic revenue growth of c.8%, a “slightly lower than last year” gross margin rate and profit before tax and adjusted items between 915 and 935 million British pounds (1.06 and 1.09 billion euros).

1 British pound = 1.16 euros

Image Credits: retail-focus.co.uk

United Kingdom Companies Footwear JD Sports Quarter Results Results Sportswear