JD Sports Lowers Profit Forecast Amid Market Volatility

JD Sports has downgraded its annual profit forecast, citing a challenging and volatile fashion market characterized by heavy discounting from competitors. The company expects pre-tax profits to range between £915m and £935m, down from earlier predictions of up to £1.04bn. Despite strong sales during Christmas and Black Friday, with a 28% sales surge during the Christmas week, overall revenue for November and December fell by 1.5% like-for-like compared to last year. The retailer's decision to avoid extensive promotional activities has preserved its gross margins, but the economic headwinds, particularly in the UK and North America, have impacted overall performance. JD Sports' physical stores outperformed its online sales, with footwear sales notably surpassing clothing. CEO Régis Schultz expressed a cautious outlook for the coming financial year, acknowledging higher-than-expected market headwinds.