JD Sports has announced that its full-year profit is expected to hit the lower end of forecasts due to a dip in consumer demand impacting sales.
The sportswear retailer, headquartered in Greater Manchester and listed on the FTSE 100, had initially projected a pre-tax profit range of £995 million to £1.035 billion. However, it now anticipates results will be at the bottom of this spectrum.
In a recent London Stock Exchange update, JD Sports highlighted that consumer spending has become more conservative over the past few months, as reported by .
The company's third-quarter report also showed a 2.4% decline in like-for-like sales within the º£½ÇÊÓƵ for the 13 weeks leading up to 2 November, with an overall decrease in sales by 0.3%.
According to JD Sports, a mix of "elevated promotional activity, unseasonable weather and a cautious consumer" has led to weaker sales figures, particularly noting a significant slump in October,
Despite a 1.1% fall in º£½ÇÊÓƵ revenue year-to-date, the company's total revenue has risen by 6.1%.
JD Sports has maintained its expansion strategy, opening 79 new stores during this period, and reported that physical store performance has surpassed online sales.
By the end of the period, the total number of JD Sports stores reached 4,541, marking an increase of 1,224 since the beginning of the year, which includes the 1,179 stores acquired through the Hibbett deal.
Earlier this year, JD Sports announced it would be acquiring Hibbett, a 'fashion inspired' retail company based in Alabama, with operations across 36 states in the US, for £878m. The company is optimistic that Hibbett will contribute approximately £25m to its pre-tax profits for the year.
Regulatory approval was also received for JD Sports' intention to purchase French sneaker brand Courir, with the deal expected to be finalised shortly.
JD Sports boss Regis Schultz remarked: "After a good start to the period, helped by strong back-to-school sales, we saw increased trading volatility in October, particularly in North America and the º£½ÇÊÓƵ, reflecting elevated promotional activity and mild weather."
He added, "Against this backdrop, we maintained our commercial discipline, improving gross margin by 0.3 per cent while still delivering 5.4 per cent organic sales growth. In addition, we made further, strong progress on our long-term growth strategy including opening 79 new JD stores across the world."
Schultz expressed confidence in the company's performance during key sales events of the year and its preparedness for the forthcoming peak season.
However, he noted, "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."
Like this story? Why not sign up here for free to get the latest business news straight to your inbox.
