JD Sports cautious on trading after H1 profit fall

JD Sports Fashion today warned it would remain cautious about trading through the rest of the fiscal year as sky-high inflation crimps consumer spending.

But the UK’s biggest sportswear retailer still reaffirmed its annual profit outlook.

The company’s comments compound concerns about Britain’s cost-of-living crisis, after rival fashion retailers Primark and ASOS and online supermarket Ocado Retail all warned about their profits this month.

“Given the widespread macroeconomic uncertainty, inflationary pressures and the potential for further disruption to the supply chain with industrial action a continuing risk in many markets, it is inevitable that we remain cautious about trading through the remainder of the second half,” JD Sports said in a statement.

Its sales in the UK, mainly online, initially softened in August and early September as customers were slow to take up heavier autumn products while the weather remained relatively warm.

The FTSE company said its pretax profit fell to £298.3m for the six months ended July 30, compared with £364.6m a year earlier.

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