JD Sports is expected to miss its ambitious £1bn profit target for the year, blaming “cautious consumer behaviour” and milder weather for a “softer” golden quarter.
Sales growth fell “slightly behind expectations” with total sales up 6% and like-for-likes nudging up 1.8% for the 22 weeks to 30 December.
The sports retailer said that apparel sales 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”.
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As a result, it expects profit before tax and adjusted items to come in between £915m and £935m for the year to 3 February 2024, down from its previous forecast of £1.04bn.
JD Sports chief executive Régis Schultz said: “We have made good progress against our five-year strategic plan, delivering global organic revenue growth of 6% in the period, against very tough comparisons with last year, and opening over 200 new JD stores in the year.
“Our key markets have seen increased promotional activity during the peak trading season, driven by a more cautious consumer, but we continue to grow market share.
“We are confident in our strategy and we continue to invest in our supply chain, systems and stores, supported by our strong cash generation and healthy balance sheet.”
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