JD Sports has lowered its profit outlook for the year after flagging a challenging fashion market that saw rivals push through heavy discounting in the run-up to Christmas.
The sports retailer, which has 17 stores in Northern Ireland, said revenues over November and December were 1.5% lower than the same period a year ago, when compared like-for-like.
Weaker demand in the UK and North America helped offset sales growth in Europe and Asia, and JD said it expects revenues for the full year to be more or less flat.
It nevertheless enjoyed a stronger Christmas with sales surging 28% over the week, topping £400 million, following a 14% leap in sales over the Black Friday period.
The retailer, dubbed the “king of trainers”, revealed it sold more than two million pairs of Nike AF1s and Nike Dunks in North America across the two-month period.
However, JD said it chose not to take part in a higher-than-expected level of promotional activity - meaning it did not compete with other retailers pushing through heavy discounting on products.
The tougher market means it now expects to report a pre-tax profit for the year of between £915m and £935m.
It had previously forecast that yearly profits could tip above the £1 billion mark.
Regis Schultz, JD Sports' chief executive, said: “While I am pleased overall with our performance, market headwinds were higher than we anticipated and therefore our full year profit forecast is slightly below our previous guidance.
“With these trading conditions expected to continue, we are taking a cautious view of the new financial year.”
Mamta Valechha, consumer discretionary analyst at Quilter Cheviot, said JD “appears to be suffering at the hands of what is a very difficult retail market”.
She added: “While JD Sports has not called out any brand in particular, it is well understood that a significant amount of the company’s woes are related to Nike.”
Sales for the US-based brand have come under pressure over the past year in the face of growing competition, leading it to set out plans for a turnaround.
