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Sportswear chain JD Sports warned that annual profit would come in behind its previous forecast amid a “challenging” market, sending the shares down 10 per cent.
The company, which has 4,558 stores globally, now expects profit before tax and adjusting items to be between £915mn and £935mn for the year to February, having said in November that it would be at the lower end of its original guidance of between £955mn and just over £1bn.
Chief executive Régis Schultz said: “While I am pleased overall with our performance, market headwinds were higher than we anticipated . . . With these trading conditions expected to continue, we are taking a cautious view of the new financial year.”
In the gloomy update on Tuesday it warned of a tough quarter, with like-for-like revenue in November and December falling 1.5 per cent, and “a challenging and volatile market” marked by heavy discounting by rivals, which it chose not to participate in.
JD Sports is the latest UK retailer to cast doubt over this year’s trading prospects after several brands last week said they were bracing themselves for an uncertain period and weaker demand as business costs mounted and inflation crept up.
Some of the changes to the company’s profit forecasts were related to acquisitions and currency changes, JD Sports said. Footwear performed better than sports clothes, and like-for-like growth in Europe and Asia-Pacific partially offset weaker trading in the UK and US.
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