JD Sports Fashion has lowered its profit forecast following tough conditions during the peak trading period, as it enters the new year with a “cautious” view.
The company reported organic revenue growth of 3.4% for the nine weeks to 4 January 2025.
Like-for-like revenue dropped 1.5% across November and December in a “challenging and volatile market”, though a stronger Christmas saw December LFL revenue rise 1.5%.
The trading update revealed that revenue growth in Europe and Asia Pacific partially offset weaker trading across the UK and North America. Meanwhile, stores outperformed online sales.
Footwear sales also increased and outperformed apparel, with “strong” revenue from its Sporting Goods and Outdoor segments.
In terms of the company’s recent acquisitions, Hibbett traded slightly ahead of the wider North America business and Courir traded well across the weeks following acquisition.
Régis Schultz, CEO of JD Sports Fashion, 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.
“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.
“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.”
As a result of the challenging trading environment, JD Sports now anticipates profit before tax and adjusting items to fall between £915-935 million, down from its earlier forecast of £1.04 billion.
