JD Sports to hit low end of guidance amid ‘volatile’ October

JD Sports has said it expects its full-year profits to hit the lower end of its £955m to £1.035bn guidance, as the retailer’s sales fell by 2.4% in the third quarter to 2 November. 

While the group saw “increased trading volatility” in October, particularly in the UK and North America, it was bolstered by a strong back-to-school sales period earlier in the quarter. 

JD Sports ended the period with a total of 4,541 stores globally, meaning it now has 1,224 more new stores than it did at the start of 2024. This includes 1,179 stores from its Hibbett acquisition. 

Thanks to the retailer’s store expansion programme, organic sales growth in the quarter was 5.4%, with year-to-date organic sales growth of 6.1%. 

Nevertheless, group revenues inched down by 0.3% during the period, due to the influence of a softer October.  

At the end of the period, year-to-date like-for-like sales growth was 0.5%. 

On a like-for-like basis, stores continued to outperform online and footwear continued to outperform apparel in the period.

Régis Schultz, CEO of JD Sports, said: “We have performed well in the key trading events this year and we are well positioned for the upcoming peak season. The trading environment remains volatile though and, following October trading, we now anticipate full year profit to be at the lower end of our guidance range.”

Within this full year guidance, JD Sports still expects Hibbett to contribute around £25m to its profit before tax and, at current exchange rates, for currency to reduce profit before tax by £15m, compared to the rates used in setting the original guidance.