UK's JD Sports reports 6% revenue growth in August-December 2023
05 Jan 24 2 min read
Insights
- UK's JD Sports Fashion reported a 6 per cent organic revenue growth and 1.8 per cent like-for-like growth for 22 weeks ending Dec 30, 2023.
- Influenced by subdued peak season spending, the company expects around 8 per cent full-year organic growth.
- JD Sports predicts a profit before tax and adjustments of £915-£935 million for the year ending Feb 3, 2024.
A key factor influencing the apparel revenue growth was the unseasonably mild weather experienced from late September. Additionally, the peak trading season across the market did not meet expectations, characterised by softer consumer spending and heightened promotional activity. As a result, JD Sports now projects its full-year organic revenue growth to be around 8 per cent, the company said in its peak season trading update.
Despite these challenges, the gross margin rate for the August-December 2023 period remained consistent with the previous year. However, this rate was lower than anticipated due to the increased promotional activities during the peak trading period. Consequently, the company anticipates that the full-year gross margin rate will be marginally lower than that of last year.
JD Sports has adjusted its full-year profit forecast for the year ending February 3, 2024. The company now estimates its profit before tax and adjusted items to be between £915 million and £935 million.
- American retailer Nordstrom names Alexis DePree as new COO
- Germany's Otto Group announces Klauke's departure by April 2025
- American retailer Genesco posts net sales of $458 mn in Q1 FY25
- Global fashion giants deliver mixed FY24 results
- American brand Guess’ revenue increases 4% in Q1 FY25
- Intertextile & Yarn Expo Shenzhen to showcase eco-friendly innovations
"We have made good progress against our five-year strategic plan, delivering global organic revenue growth of 6 per cent in the period, against very tough comparisons with last year, and opening over 200 new JD stores in the year. Our key markets have seen increased promotional activity during the peak trading season, driven by a more cautious consumer, but we continue to grow market share. We are confident in our strategy, and we continue to invest in our supply chain, systems, and stores, supported by our strong cash generation and healthy balance sheet," said Regis Schultz, CEO of JD Sports Fashion.
Fibre2Fashion News Desk (DP)
Popular News
|
EU Council adopts ecodesign; bans destruction of unsold textile |
|
Demand rises in south India’s cotton yarn market, prices up in Mumbai |
|
Bangladesh 3rd largest apparel supplier for Malaysia this year |
|
China's fabric exports rise in Q1 2024; Vietnam leads as top market |
|
AI-driven tech can revolutionise global fast fashion industry: Study |
|
PC, polyester & viscose yarn prices rise in India; demand on the rise |