JD Sports’ UK business has faced a decline in sales due to disruptions in the Red Sea affecting deliveries and the cold, wet spring reducing demand for camping equipment. Sales at the company’s outdoor kit chain were down 5.3% in the six months leading up to August 3rd, with poor weather exacerbating the issue.
The retail group also reported a 4.6% decrease in sales at established stores in the UK, citing challenging market conditions and increased discounting due to unfavorable weather conditions. Despite strong sales of replica football kits during the men’s European Championship, profits were down 14%. This led to a 4.5% drop in JD Sports’ shares in early trading.
However, JD Sports’ chief executive, Régis Schultz, remains optimistic about the sportswear and athleisure market. He expressed confidence in the company’s ability to outperform, highlighting the structural growth opportunities in the market. Schultz also mentioned that vintage running gear is expected to be a big trend leading up to Christmas.
While the UK sales decline had no relation to consumer sentiment according to Schultz, JD Sports saw strong sales growth in Europe and the US, with the US market accounting for nearly 40% of sales. Despite foreign exchange shifts impacting profits, the group still expects to meet profit expectations for the full year.
In conclusion, despite facing challenges in the UK market, JD Sports remains positive about its ability to perform well globally in the sportswear and athleisure sector.
Source
Photo credit www.theguardian.com
