JD Sports enjoys higher sales as it pursues global expansion
The high street retailer said its total sales grew 2.4% over the three months to August, compared with the same period a year ago.
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Your support makes all the difference.JD Sports Fashion has reported higher global sales after opening 85 new stores this year, but warned that the market remains “volatile”.
The high street retailer said its total sales grew 2.4% over the three months to August, compared with the same period a year ago, and on a like-for-like basis, which strips out the impact of new store openings.
This was driven by growth in North America and Europe, whereas sales in the UK slipped 0.8% year on year, the group said.
It flagged a decline in earnings generated from clothing and online sales, which particularly dragged on the UK.
JD said its stronger performance was driven primarily by the success of its “multi-brand” model, and the fact that sales last year were weaker.
Chief executive Regis Schultz stressed that there continues to be demand for new trainers among its younger demographic of shoppers.
He said: “The trend around sneakers and more relaxed apparel continues.
“There is a little bit of movement around brands, with some seeing some innovation, but I think we see strong appetite from the consumer and especially the young customer… and that is what we are benefiting from.”
Nike is still “by far the number one” brand, while there is “still some room to go for Adidas to catch up”, Mr Schultz said.
Meanwhile, the boss revealed that the retailer was boosted by sales of “replica” sports shirts and clothing during the Euro 2024 men’s football tournament earlier this year.
He said sales of replica products were 35% higher this year than generated during the last Euros, and that it sold as many Scotland shirts as England shirts this year.
JD opened 85 new shops over the first half of 2024 which, along with acquiring American sports brand Hibbett, took its estate to more than 4,500 stores by August.
Hibbett, which it agreed to buy for 1.1 billion US dollars (£840 million) earlier this year, is expected to boost JD’s share of the sportswear market across the US.
Nevertheless, JD said it is mindful that the “global macro environment remains volatile and so we continue to be cautious on our outlook for the rest of the year”.
Mr Schultz said this largely relates to the level of competition in the sportswear market, meaning many brands and retailers including JD have had to offer more promotions and discounts than usual.
But it said it is sticking to its forecast pre-tax profit of between £955 million and £1 billion for the year.
The immediate future looks increasingly bright
Richard Hunter, head of markets at interactive investor, said: “Perhaps the most exciting and obvious opportunity in the medium term is JD’s growing brand presence in the major US market.”
The purchase of Hibbett should “propel brand awareness, especially in the south-eastern corner of the country,” he said.
“Given the group’s close association with major brands such as Nike and Adidas and its aim to engage an emerging generation of customers through a combined culture offering of sport, music and fashion, the immediate future looks increasingly bright.”