JD Sports out of the race to £1bn profit after another downgrade
JD Sports out of the race to £1bn profit after another downgrade
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JD Sports has cut annual profit guidance for the second time in less than two months after facing tougher market conditions than expected over the crucial Christmas trading period. The Bury-based group, which made £917.2million in the previous year, had hoped to follow fellow retailers Tesco, M&S and Kingfisher in achieving £1billion in pre-tax profits, but is now set to be beaten to the milestone by Next.
Boss Régis Schultz told investors on Tuesday that 'market headwinds were higher' than predicted over the nine weeks to 4 January. JD Sports' decision to shun discounting also put the group at a disadvantage in 'a more promotional environment in the period than we anticipated', he said.
Like-for-like revenues across November and December fell 1.5 per cent as growth in Europe and Asia Pacific only partially offset weaker trader in the UK and North America. Recently published industry data suggests a disappointing 'golden quarter' for retailers more generally, with non-food sales faring particularly poorly.
JD Sports has cut profit guidance for the second time in less than two months. JD Sports said it had delivered a 'strong Christmas and December', with like-for-like sales up 1.5 per cent thanks to strong demand for its footwear, sporting goods and outdoor segments.
