JD Sports Fashion Plc, a leading sportswear retailer, recently announced that its annual profit will be lower than expected. The Manchester-based company now predicts pre-tax profits between £915 million and £935 million for the year ending in February. This is a drop from their earlier forecast of £955 million to £1.035 billion.
Back in November, JD Sports hinted that profits might trend toward the lower end of their guidance due to a “volatile trading environment.” This uncertainty led to a sharp decline in their share prices, which dropped nearly 13% in early trading and ended the day down almost 7%. Over the past year, the stock has lost more than 20% of its value.
During November and December, JD Sports experienced a 1.5% decrease in like-for-like revenue. The company noted a challenging market filled with increased promotional activity, although their organic revenue grew by 3.4%. Looking ahead, they expect like-for-like revenue to remain flat for the year, while organic revenue could increase by about 5%.
CEO Régis Schultz said the company opted out of excessive promotions to focus on maintaining strong gross margins, managing inventory, and ensuring solid cash flow. “While I am pleased overall with our performance, market headwinds were higher than we anticipated,” Schultz remarked. He added that due to these ongoing challenges, they are taking a cautious approach for the next financial year.
JD Sports aims to maintain its gross margins at around 48%, matching last year’s figures. Their sales in Europe and Asia Pacific helped counterbalance weaker performance in the U.K. and North America. The retailer boasts a global presence with 4,558 stores.
Last year, JD Sports expanded its reach by acquiring Hibbett, an athletic fashion retailer, for about $1.1 billion. This move is part of their strategy to grow their share in the competitive sportswear market.
Known as the “King of Trainers,” JD Sports offers a wide range of products from brands like Nike, Adidas, and New Balance, alongside their own lines, including Hoodrich and Supply & Demand. The company was founded in 1981 by John Wardle and David Makin in Bury, Greater Manchester.
In 2005, they sold a significant stake to the Pentland Group, which has since increased its ownership to 52%. Pentland, one of the UK’s biggest sports apparel firms, owns various renowned brands and boasts annual sales of around $8 billion. The group has a workforce of over 76,000 people and is led by Stephen Rubin, whose family has owned Pentland since its inception in 1932.
You might like: Celebrating Excellence: Getty Images Photographers Shine at the 2025 World Sports Photography Awards
Source linkJD Sports,Nike,Adidas,sportswear retailer,retail billionaire,Stephen Rubin,Pentland Group,UK retail sales,Regus Schultz
