JD Sports experienced a decline in sales during October, attributed to unusually mild weather.
- Revenue fell by 0.3% year-on-year, despite a 5.4% increase on an organic basis.
- UK revenue saw a 2.4% decline, affecting overall profit expectations.
- The company now forecasts yearly profits to be at the lower end of their guidance range.
- Despite the downturn, JD Sports expanded significantly with 79 new store openings.
In October, JD Sports encountered a sales decline, largely driven by mild weather conditions, which affected consumer demand both in the UK and the US. This weather anomaly was a significant factor in the company’s financial performance for that period.
For the third quarter ending 2 November 2024, JD Sports’ revenue fell by 0.3% on a like-for-like basis. However, there was a notable 5.4% increase in revenue on an organic basis, indicating some underlying growth potential despite the challenges faced.
The UK market experienced a 2.4% decrease in like-for-like revenue compared to the previous year. This reduction contributed to JD Sports adjusting its profit expectations to the lower end of its previously forecasted range of £955 million to £1 billion.
Régis Schultz, CEO of JD Sports, observed increased trading volatility in October, particularly in North America and the UK. He noted the impact of elevated promotional activities and the unusually warm weather, which disrupted typical consumer spending patterns.
Despite these challenges, JD Sports has been proactive in its global expansion strategy. The company opened 79 new stores in the third quarter alone, bringing the total to 4,541 stores. This includes the acquisition of 1,179 fascias from US competitor Hibbett, showcasing JD Sports’ commitment to growing its market presence.
JD Sports remains focused on strategic growth despite current market challenges.
