The company said like-for-like sales in the six months to August 2 fell 2.5 percent to £5.9 billion (€6.7bn) with profits before tax and adjusting items declining 13.5 percent to £351 million (€402m).
Sportswear retailer JD Sports said it expected limited financial impact from US tariffs as it held annual guidance, but warned that it remained cautious about the trading environment amid continuing pressure on household finances.
JD Sports said like-for-like sales in the six months to August 2 fell 2.5 percent to £5.9 billion (€6.7bn) with profits before tax and adjusting items declining 13.5 percent to £351 million (€402m).
Excluding the two businesses acquired - Hibbett and Courir - organic sales growth was up 2.7 percent on a constant currency basis.
Like-for-like sales fell across all geographical regions. North America – which is its biggest market accounting for 39 percent of group sales in the period – was the worst hit, dropping 3.8 percent.
The UK registered the second biggest decline, down 3.3 percent to £1.46 billion (€1.67bn), where overall there was a net reduction of 13 stores as the company looks to improve locations and optimise shop sizes.
Elsewhere, Europe fell 0.3 percent to £1.9 billion (€2.18bn) and Asia Pacific 2.4 percent to £237 million (€271m).
North America saw a “much-improved” online sales performance in the half supported by a better online range, focused marketing efforts and the successful roll-out of a new e-commerce platform for the JD and Finish Line fascias, the company said.
In the UK, which brings in a higher proportion of online sales relative to other regions, e-commerce sales were lower year on year due to a difficult trading environment as well as tough prior year comparatives.
European online traffic and conversion saw growth, driven by controlled price investments in products offered, supported by the ongoing roll-out of JD Sports’ ‘ship-from-store’ fulfilment model.
The company said there was a “fundamental shift” in the global footwear product cycle, given the transition between newer franchises and some significant “end of cycle” product lines.
By comparison, the group’s apparel proposition was in “excellent shape” with “significant scope” to leverage this for growth, particularly in North America where our the is relatively low compared to other regions.
“We remain cautious on the trading environment for the second half of the year, reflecting continued pressure on consumer finances, elevated unemployment risk, and the ongoing transition in the footwear product cycle,” said chief executive Regis Schultz.
JD Sports added that the limited impact was in part a result of buying stock before tariffs came into force.
“Looking further ahead, uncertainty remains over broader tariff impacts as well as US consumer sentiment,” it said.
The company still expects full-year profit before tax in a range of £853 million - £914 million (€977m-€1.04bn), with a consensus of £878 million (€1bn). It also warned that over the full year like-for-like sales will be down from the prior fiscal year, but noted that results would be weighted towards the second half.
AJ Bell investment director Russ Mould said: “A larger than normal second-half weighting is another worry – with the risk that the company ends up having to downgrade guidance if the second half doesn’t make up the shortfall.”
