JD Sports issues profit warning on weak consumer demand

JD Sports Fashion has reported constant currency organic revenue growth of 6 percent with like-for-like growth of 1.8 percent for the 22 weeks to December 30.

Commenting on the trading update, Régis Schultz, CEO of JD Sports Fashion, said: "We have made good progress against our five-year strategic plan, delivering global organic revenue growth of 6 percent in the period, against very tough comparisons with last year, and opening over 200 new JD stores in the year."

For the full year ending February 3, 2024, JD Sports now estimates adjusted profit before tax will be between 915 million pounds and 935 million pounds. Full year organic revenue growth is forecasted to be 8 percent.

The gross margin rate for the period was in line with last year and lower than expectations due to the elevated level of promotional activity during the peak trading period. Therefore the company now anticipates the full-year gross margin rate will be slightly lower than last year.

The above trading performance, the company said in a statement, was slightly behind expectations since 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 anticipated, reflecting more cautious consumer spending.