UK sportswear retailer JD Sports is forced to lower its predicted profit margin for this year as a result of its inability to entice weary customers even during the crucial Christmas season.
Due in part to what it described as “increased promotional activity” throughout the industry, the retailer announced that it will bank more than £ 100 million less than initially estimated. However as per the brand, the revenue grew 6 per cent organically after taking fluctuating currency rates into consideration. The brand clarified that it was slightly less than what they had anticipated.
The people of the UK have been hit by extreme inflation over the past two years and have left them with lesser money in their pockets for shopping.
CEO Regis Schultz said, “Our key markets have seen increased promotional activity during the peak trading season, driven by a more cautious consumer, but we continue to grow market share. We have made good progress against our five-year strategic plan, delivering global organic revenue growth of 6 per cent in the period, against very tough comparisons with last year, and opening over 200 new JD stores in the year,” Schultz said.
He added, “We are confident in our strategy and we continue to invest in our supply chain, systems and stores, supported by our strong cash generation and healthy balance sheet.”
The brand now expects the pre-tax profit from £915 million to £935 million in the year to early February which is below from previous expectations of £1.04 billion.
