JD Sports activities Trend has lowered its revenue forecast following powerful situations in the course of the peak buying and selling interval, because it enters the brand new 12 months with a “cautious” view.
The firm reported natural income development of three.4% for the 9 weeks to 4 January 2025.
Like-for-like income dropped 1.5% throughout November and December in a “difficult and risky market”, although a stronger Christmas noticed December LFL income rise 1.5%.
The buying and selling replace revealed that income development in Europe and Asia Pacific partially offset weaker buying and selling throughout the UK and North America. In the meantime, shops outperformed on-line gross sales.
Footwear gross sales additionally elevated and outperformed attire, with “sturdy” income from its Sporting Items and Out of doors segments.
By way of the corporate’s current acquisitions, Hibbett traded barely forward of the broader North America enterprise and Courir traded properly throughout the weeks following acquisition.
Régis Schultz, CEO of JD Sports activities Trend, stated: “Contemplating the present headwinds available in the market, we carried out properly, delivering natural income development of three.4% throughout the interval, and a robust Christmas resulted in LFL income development in December.
“In step with our confirmed long-term strategy, we selected to not take part in what was a extra promotional atmosphere within the interval than we anticipated, totally sustaining our buying and selling self-discipline to ship gross margins forward of final 12 months, clear stock and powerful money administration.
“Whereas I’m happy general with our efficiency, market headwinds have been greater than we anticipated and due to this fact our full 12 months revenue forecast is barely beneath our earlier steering. With these buying and selling situations anticipated to proceed, we’re taking a cautious view of the brand new monetary 12 months.”
Because of the difficult buying and selling atmosphere, JD Sports activities now anticipates revenue earlier than tax and adjusting objects to fall between £915-935 million, down from its earlier forecast of £1.04 billion.
