JD Sports racing toward £1 billion profit mark as sales grow

JD Sports Fashion has said its sales jumped last month but cautioned over slower trading in North America, ahead of the group’s annual general meeting (AGM) with shareholders.

The sportswear retailer stood by its outlook for the full year where it expects to notch up a £1 billion profit.

Sales growth slowed to 8% in May, after jumping 15% over the first three months of the year, the company said.

But the year-on-year improvement reflects supply bottlenecks easing, meaning it had more stock to sell.

In more recent weeks, positive trading in the UK, Europe and Asia has been partially offset by weaker sales in North America, amid a sector-wide slowdown across the region, the company cautioned.

JD has been growing rapidly in the US, including adding a flagship store in Chicago, and had 58 net new store openings across Europe such as in Hungary and Greece over the first quarter.

Last month, it shared ambitious growth plans to open up to 350 shops globally each year, focused in North America and continental Europe.

The British firm also eyed up an acquisition last month of France’s sportswear and trainer retailer Courir, for nearly £450 million.

JD said it expects the proposed takeover to formally close later in the year, as it looks to expand further into underrepresented markets.

The retail giant saw its profit shrink by more than £200 million to £441 million last year, including costs from its previous acquisitions.

But markets expect the firm to report a pre-tax profit of £1.04 billion in the year to the end of February 2024, with around 65% of it generated in the second half of the year.

JD is set to face pressure from shareholders at its AGM on Tuesday to lift its lowest paid workers’ wages in line with inflation, amid cost-of-living pressures.