JD Sports Global Sales Decline Amid Cost-of-Living Pressures
Footwear sales hit as retailer revises profit expectations downwards, despite UK growth in outdoor products and football kits.
Carla Rooney
JD Sports reported a 3.1% decline in global sales over the 13 weeks to August 1.
The retailer relies heavily on non-essential spending from younger customers; these consumers are squeezed by relentless cost-of-living pressures, including higher fuel prices, which has dragged on global sales.
Pressure on consumer spending particularly impacted footwear sales, especially for hotly anticipated launches or limited-edition trainers, amid an increased level of discounting.
Weaker trading in the first half of the year stemmed from incremental cost-of-living pressures on its core consumer from continued inflation, including higher fuel prices.
Regis Schultz confirmed that "Trading in the second quarter remained tough"; he added that the market stayed highly promotional, reflecting consumer and footwear product cycle headwinds, while the core consumer was impacted by incremental cost-of-living pressures.
Trading in the second quarter remained tough.
Schultz further noted that North America experienced the most acute impact, also reflecting a slower quarter for high-heat footwear product and the timing of back-to-school demand.
Despite the global decline, the UK delivered a strong quarter, buoyed by robust football replica kit sales and an improved performance in its outdoor business.
In the UK, sales increased by 0.8% year-on-year, supported by spending on outdoor products and football replica kits.
Nike's share price has decreased by a third this year, while Walmart reported its slowest sales growth in six years.
Andrew Higginson exited his role as chair last month. The Pentland Group holds a 55% stake in JD Sports.