JD Sports has reported that the UK is its worst-performing market, with sales and profits hit by rising unemployment among young people. The sportswear retailer, which also owns Blacks and Go Outdoors, said annual profits would be at the lower end of expectations, around £853 million, down from a hoped-for £1 billion.
Chief executive Régis Schultz cited “pressures on our core customer demographic, including rising unemployment levels, as well as near-term volatility around consumer sentiment.” Official figures show that 946,000 16- to 24-year-olds are not in education, employment or training (Neet), close to the highest level in a decade.
Sales at established JD Group stores fell 3.3% in the three months to 1 November, with declines also in the US and EU. The company has also been affected by a heavy reliance on Nike, which has struggled to spur consumer interest.
Barry Fletcher, chief executive of the Youth Futures Foundation, said: “This is a long-term problem that continues to negatively shape the lives of too many across the country.” Analysts also noted that recent changes to employer taxes and minimum wages have brought extra costs and challenges.
