JD Sports reports a challenging third quarter, with sales impacted by market volatility.
- Group revenues decreased slightly by 0.3% over 13 weeks ending 2 November.
- UK sales fell by 2.4%, attributed to softer consumer demand and elevated promotions.
- Despite difficulties, the brand maintained commercial discipline, improving gross margin and achieving organic sales growth.
- CEO Régis Schultz emphasises progress on long-term strategies, including expanding global store presence.
JD Sports Fashion Plc has reported a decline in its sales during the third quarter, with group revenues dipping by 0.3% for the 13 weeks to 2 November. The company highlighted ‘increased trading volatility’ in October as a significant factor influencing its performance, particularly noting the effects in North America and the UK.
In the UK, sales saw a more pronounced drop of 2.4%, which the company attributes to a combination of elevated promotional activities, unseasonable weather, and a generally cautious consumer environment. This led to overall sales being forecasted towards the lower end of the expected £955m to £1.035bn guidance for the full year.
Despite these challenging market conditions, JD Sports has focused on maintaining its commercial discipline. The company succeeded in improving its gross margin by 0.3 percentage points and achieved a 5.4% organic sales growth, demonstrating a commitment to financial stability amidst external pressures.
In response to these challenges, JD Sports continued to push its long-term growth strategy forward by opening 79 new stores across the globe during the quarter. This expansion brings the total number of new stores launched this financial year to over 180, underscoring the company’s strategic initiatives to broaden its market footprint.
CEO Régis Schultz remarked on the period, stating, ‘After a good start to the period, helped by strong back-to-school sales, we saw increased trading volatility in October… Against this backdrop, we maintained our commercial discipline, improving gross margin by 0.3%pts while still delivering 5.4% organic sales growth.’ Schultz’s comments reflect a cautious optimism in steering JD Sports through a complex trading environment.
JD Sports remains committed to its growth strategies amidst a challenging and dynamic market landscape.
