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UK’s JD Sports says discounting, cautious consumer to dent profit
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LONDON (Reuters) -British sportswear retailer JD Sports Fashion warned annual profit would come in at the lower end of its guided range after a tough October of discounting, unseasonable weather and consumer caution.
LONDON (Reuters) -British sportswear retailer JD Sports Fashion warned annual profit would come in at the lower end of its guided range after a tough October of discounting, unseasonable weather and consumer caution.
FTSE 100-listed JD, which sells Nike, Adidas, On, HOKA and other brands in Britain, Europe and the United States, said volatile trading last month dragged underlying sales down by 0.3% in its third quarter to Nov. 2.
The company said it believed demand had been suppressed in the U.S. ahead of the election in early November. Third-quarter underlying sales were down 1.5% in North America.
“The trading environment remains volatile,” CEO Regis Schultz said in a statement.
For the full financial year, JD said pretax profit would come in at the lower end of its 955 million pounds to 1.035 billion pounds range. In its 2023/24 year, it made 917.2 million pounds.
(Reporting by Sarah Young; Editing by Jan Harvey and Paul Sandle)
Annual profit refers to the total earnings of a company over a fiscal year after all expenses, taxes, and costs have been deducted from total revenue.
Consumer caution describes a situation where consumers are hesitant to spend money due to economic uncertainty, leading to reduced purchasing activity.
Discounting in retail refers to the practice of reducing prices on products to encourage sales, often used to clear inventory or attract customers.
Underlying sales are the sales figures that exclude any one-time events or adjustments, providing a clearer view of a company's performance over time.
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