JD sports issues profits warning on weak demand
Leisurewear retailer JD Sports Fashion has lowered its full-year profit forecast on the back of higher costs, a slowdown in consumer spending and milder weather.
It said heavier discounting also impacted second-half trading so that full-year gross margins would be slightly lower than the previous year.
The seller of a wide range of international brands, said this means profit before tax and adjusted items will be between £915m and £935m for the year ending 3 February, down from expectations of £1.04 billion.
It said: “Apparel revenue growth was impacted by milder weather from the second half of September, while the peak trading season, across the market, was softer and more promotional than we anticipated, reflecting more cautious consumer spending.”
JD Sports said its like-for-like organic revenue increased 1.8%, slightly less than expected, for the 22 weeks ended 30 December.
The London-listed firm expects full-year organic revenue growth of about 8%.