The British retail group JD Sports Fashion Plc had to admit on Thursday that sales development in autumn and winter fell short of its own expectations. In addition, higher discounts in the weeks before Christmas weighed on the result. The company then lowered its profit forecast for the 2023/24 financial year, which runs until February 3rd.
According to an interim statement, consolidated sales in the 22 weeks before December 30, 2023 exceeded the corresponding previous year’s level on an organic basis by 6.0 percent after adjusting for currency effects. Like-for-like sales rose by 1.8 percent.
The retailer explained that development was “slightly behind expectations”. The group cited the unusually mild weather from the second half of September and the weak Christmas business, which was characterized by high discounts, as reasons.
In view of the latest results, the company now expects an organic sales increase of around eight percent for the current year. The gross margin is expected to be below the previous year’s level.
Due to the recently unexpectedly weak margins, management lowered its profit forecast. For 2023/24 it now only expects earnings before taxes adjusted for special effects in the range of 915 to 935 million British pounds (1.06 to 1.08 billion euros). The company had previously forecast a corresponding profit of 1.04 billion British pounds.
