JD Sports boss Régis Schultz is still struggling to turn up the heat amid a tepid trainer market, as the sportswear retailer reported a drop in like-for-like sales in its most recent quarter.
Sales Decline in Key Markets
The company said like-for-like sales fell by 0.4% in the 13 weeks to 3 August, compared with a 1.5% rise in the same period last year. The decline was driven by a weaker performance in the UK and Europe, where like-for-like sales dropped 2.1%, and in North America, where they fell 1.1%.
JD Sports, which owns brands such as JD, Size? and Footpatrol, said the market for trainers and sportswear had been “subdued” in recent months, with consumers cutting back on discretionary spending amid the cost-of-living crisis.
Outlook and Strategy
Schultz, who took over as chief executive in September 2022, said the company was “cautious” on the outlook for the rest of the year, citing “ongoing macroeconomic uncertainty” and “a more cautious consumer”.
The company said it was focusing on “controlling the controllables”, such as managing inventory, costs and cash, while continuing to invest in its digital capabilities and store estate.
JD Sports reiterated its full-year profit guidance of between £955m and £1.035bn, but said the outcome would depend on the performance of the key Christmas trading period.
