JD Sports hit as weary customers flock to sale prices

Sports fashion giant JD Sports struggled to tempt weary customers even during the all-important Christmas period, forcing it to downgrade the amount of profit it expects to make this year.

The retailer said it would bank more than £100 million less than previously thought in part to what it called “increased promotional activity” across the sector.

It said the “peak trading season” was softer and had more promotions than it had anticipated. The retailer did not directly say whether some of these special offers had been available in JD Sports stores or whether it was down to rivals who were taking business away from it.

However, the company said revenue grew 6% organically when accounting for moving exchange rates in the last 22 weeks of the calendar year. “This was slightly below our expectations,” JD said.

Customers were cautious, having been hit by soaring inflation over the last two years, which has left many with less money in their pockets.

“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,” said CEO Regis Schultz.

The business said it had also been hit by milder weather from the second half of September onwards.

Pre-tax profit is now expected to be £915 million to £935 million in the year to early February, down from previous expectations of £1.04 billion.

“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,” Schultz said.

“We are confident in our strategy and we continue to invest in our supply chain, systems and stores, supported by our strong cash generation and healthy balance sheet.”

JD's update was in contrast to high street giant NEXT which said festive sales had jumped a higher than expected 5.7% and as a result was upping its profit guidance for the year.