JD Sports lowers FY guidance after ‘challenging’ winter
The group now expects full-year profits to be between £915m and £935m, down from previous expectations of £955m to £1bn
JD Sports has lowered its full-year guidance after it struggled with a “challenging and volatile” market over the Christmas period.
The group now expects full-year profits to be between £915m and £935m, down from previous expectations of £955m to £1bn.
It comes as like-for-like sales in the nine weeks to 4 January fell by 1.5%, with the group having to increase promotional activity over the period. Despite this, December like-for-like sales rose by 1.5%.
Overall, organic revenue growth in the period was 3.4%, with the group expecting full-year organic revenue growth to be around 5%. Revenue growth in Europe and Asia Pacific partially offset weaker trading across the UK and North America.
Footwear sales grew and outperformed apparel, while stores outperformed its online business. The group also welcomed a strong like-for-like revenue performance in its Sporting Goods and Outdoor segment.
Régis Schultz, CEO of JD Sports Fashion Plc, 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 LFL revenue growth in December. I would like to thank all our colleagues for the hard work and commitment they showed throughout this key part of the year.
“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.”
He 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.”
