JD Sports reported a slowdown in sales for October, affected by mild weather conditions.
- The company expects full-year profits to hit the lower end of its projected range due to reduced demand in key markets.
- Revenue across the group experienced a slight decrease, although organic growth was noted.
- Headwinds persisted with a decline in like-for-like revenue in the UK.
- Despite challenges, JD Sports continued its global expansion with a significant number of new store openings.
JD Sports has announced a decline in sales during the month of October, attributing this to unusually mild weather conditions impacting consumer demand in both the United Kingdom and the United States. The company has adjusted its full-year profit expectations, forecasting earnings to be at the lower end of its guidance range due to these conditions.
In the third quarter, the retailer experienced a 0.3% drop in revenue year-on-year on a like-for-like basis, despite a 5.4% increase on an organic basis for the three months ending 2 November 2024. In the UK, like-for-like revenue fell by 2.4%, a performance JD Sports linked to October’s unseasonably warm weather.
Chief Executive Officer Régis Schultz noted the volatility in trading, particularly in North America and the UK. ‘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 UK, reflecting elevated promotional activity and mild weather,’ he remarked, highlighting the unpredictable nature of current market conditions.
Despite these setbacks, JD Sports remains optimistic about its positioning for the upcoming peak trading season, having performed robustly in earlier key trading events. The company has opened 79 new stores in the third quarter as part of its global expansion efforts, bringing the total number of stores to 4,541, including outlets acquired from US competitor Hibbett.
The retail environment, while challenging, offers opportunities for growth and adaptation, as demonstrated by JD Sports’ commitment to expanding its physical retail footprint globally.
The October sales dip, influenced by external weather factors, is a temporary hurdle for JD Sports as it positions itself for future growth.
