JD Sports warns on profits amid 'volatile' conditions

(Sharecast News) - JD Sports Fashion cut its full-year profits outlook on Thursday, after uncertain economic conditions weighed on trading. Updating on trading ahead of the crucial festive shopping season, the retailer said it now expected pre-tax profits before adjusting items to come in at the lower end of market forecasts.

Analysts had been expecting pre-tax profits in the range of £853m to £888m, with consensus currently for £871m.

JD Sports blamed a "year of volatility", including rising unemployment levels and softer consumer sentiment.

Regis Schultz, chief executive, said: "As we enter an important trading period, we are mindful of recent weak macro consumer indicators in our key markets.

"These lead us to take a pragmatic approach for our full-year profit outturn."

Total sales in the 13 weeks to 1 November, including acquisitions, rose 8.1% on a constant currency basis. However, like-for-like sales fell 1.7%.

Driving the decline was the UK, which saw comparable sales slide 3.3%. In North America, they were 1.7% lower and down 1% in Europe. Only Asia Pacific saw any growth, up 3.9%.

JD Sports said that while there had been a "solid" performance in apparel during the third quarter, footwear had been more challenging.

Schultz added: "We are navigating a year of volatility in external factors with disciplined execution, reflected in a solid third quarter.

"We remain confident in the overall positive trajectory for our industry and JD Group over the medium term."