Profits Now Expected Between £915m-£935m, Down from Previous £955m-£1bn
- JD Sports lowers FY guidance due to challenging market conditions
- Full-year profits now expected between £915m and £935m, down from previous expectations of £955m to £1bn
- Like-for-like sales in the nine weeks to 4 January fell by 1.5%
- December like-for-like sales rose by 1.5%
- Organic revenue growth was 3.4% overall, with Europe and Asia Pacific offsetting weaker UK and North America trading
- Footwear outperformed apparel and stores outperformed online business
- Strong like-for-like revenue performance in Sporting Goods and Outdoor segment
- CEO Régis Schultz acknowledges team’s hard work and commitment
- Trading conditions expected to continue, taking a cautious view for the new financial year
JD Sports has revised its full-year guidance due to a difficult and volatile market environment during the winter season. The group now anticipates profits between £915 million and £935 million, down from previous expectations of £955 million to £1 billion. Like-for-like sales in the nine weeks leading up to January 4th dropped by 1.5%. However, December like-for-like sales increased by 1.5%. Overall, organic revenue growth reached 3.4%, with Europe and Asia Pacific partially compensating for weaker trading in the UK and North America. Footwear sales outperformed apparel, while stores surpassed online business performance. The Sporting Goods and Outdoor segment also showed a strong like-for-like revenue increase. CEO Régis Schultz praised his team’s efforts: ‘We maintained our trading discipline to deliver better gross margins, clean inventory, and strong cash management despite the promotional environment.’ He added that while he is pleased with the performance, market headwinds were higher than anticipated, leading to a slightly lower full-year profit forecast. With these conditions expected to persist, JD Sports takes a cautious approach for the upcoming financial year.
Factuality Level: 10
Factuality Justification: The article provides accurate information about JD Sports’ financial performance and market conditions without any sensationalism or personal opinions. It reports facts and figures related to sales, profit expectations, and the CEO’s comments on the situation.
Noise Level: 3
Noise Justification: The article provides relevant information about JD Sports’ performance and market conditions, with some analysis from the CEO. It does not contain excessive noise or filler content, but it is mostly focused on reporting financial results and does not delve into broader implications or long-term trends.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses JD Sports lowering its full-year guidance due to a challenging market, which impacts the company’s financial performance and profit expectations. It also mentions organic revenue growth in different regions and how it compares to previous expectations.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
www.retailsector.co.uk