JD Sports bemoans ‘tough trading’ as US sales slip
JD Sports has seen revenue and profit slip so far this year, as weak consumer confidence in its key US market drives a “tough trading environment”. Régis Schultz, chief executive of the so-called ‘King of Trainers’, said on Wednesday that he is “encouraged” by the progress towards his growth plan while admitting that cost-of-living pressures [...]
JD Sports, the prominent footwear and apparel retailer, is facing a challenging trading environment due to weak consumer confidence in its key market of the United States. Chief Executive Régis Schultz expressed optimism about the progress towards his growth plan, but acknowledged that rising cost-of-living pressures are affecting its core consumer base.
The FTSE 100 group recorded a decline in like-for-like sales of 2.8 percent for the six months ending August, with pre-tax profit falling by 20 percent to £282 million. North American sales, which account for 38 percent of the company's total sales, suffered a four percent decrease, the worst performance in the group's history. The retailer's sluggish sales in the region were attributed to weakened consumer sentiment caused by the broader cost-of-living situation and the deferral of "back-to-school" demand into August.
Despite the difficulties, JD Sports is exploring new opportunities overseas. The company announced its plans to enter the Mexican market for the first time, with more than 140 stores set to open next year through a local franchise operator. The management believes that Mexico offers a large, highly engaged consumer base and aligns well with JD's unique position as a curator of footwear, apparel trends, and sport, music, and fashion.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
