JD Sports has issued a trading update ahead of today’s annual general meeting, assuring investors that sales are in line with expectations.
Chief executive Peter Cowgill conceded that margins had been squeezed at the fashion retailer, adding that the timing of Eid led to a change in its sale dates, negatively effecting its year-on-year sales comparisons.
Although sales are reportedly comfortably on track, JD’s share prices plummeted 10.6 per cent marking its worst day of trading since Brexit.
Investors have gotten used to massive sales growth and extremely positive trading updates, leading the company’s stock to be one of the best performing in recent years.
News that the company has seen a squeeze on margins and is simply on track to meet expectations, will be seen as a warning sign for shareholders.
“Whilst we have faced some anticipated margin pressure in achieving the sales growth, the board considers that the Group is currently on track to deliver a result for the full year in line with market expectations,” Cowgill said.
“We also believe that our highly differentiated multibrand offer, combined with an attractive and dynamic presentation instore and online, gives the Group continuing competitive advantage.”