Leading UK-based sports-fashion retailer JD Sports Fashion has reported a constant currency organic revenue growth of 6 per cent for the 22-week period ending December 30, 2023, accompanied by a like-for-like growth of 1.8 per cent. These figures fell slightly short of the company's initial projections.

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.

"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)

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