Key facts
- JD Sports has reduced its full-year pre-tax profit forecast to £700m-£800m.
- The company cited slowing sales in the US and competitor discounting as reasons for the revision.
- Cost-of-living pressures have impacted consumer spending, leading to a 3.1% drop in like-for-like sales in the second quarter.
- North American sales fell by 6.8%, while UK sales showed resilience.
- The company was forced to offer promotions to offset the impact of inflation on consumers.
JD Sports has significantly lowered its profit forecast, now expecting pre-tax profits to be between £700 million and £800 million for the full year, a reduction from its prior projection of £750 million to £850 million. The company attributed this revision to a slowdown in sales, particularly in the United States, and increased discounting by competitors. Chief Executive Regis Schultz noted that persistent inflation and cost-of-living pressures have impacted consumer spending, forcing the retailer to implement price cuts and promotional sales. Overall like-for-like sales declined by 3.1% in the second quarter, with North America experiencing a 6.8% drop and Europe a 2.7% decrease. The UK market offered a brighter outlook, supported by World Cup-related purchases and demand for outdoor gear. Analysts suggest JD Sports's performance reflects a broader cautiousness among US consumers.