JD Sports won’t break the £1bn profit it targeted at the start of the financial year.
The Bury-based retailer released a trading update this morning to say that its peak trading period was “softer and more promotional” than it expected.
It means that means profits will most likely fall between £915m and £935m for the full year.
The company added that gross margins for the period were lower than expected due to “the elevated level of promotional activity” during peak trading.
“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,” said Régis Schultz, CEO of JD Sports Fashion Plc.
“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.”
The group stated that its anticipated organic growth of 8% was “slightly behind our expectations.”
It added that apparel sales were impacted by milder weather and there was also “more cautious consumer spending.”
Its full year ends on 3rd February.
