Sports retailer JD posts fall in January sales amid 'challenging market'

Like-for-like sales in the Ireland and the UK fell by more than 3% in the fourth quarter

Chief executive Regis Schultz said on Thursday that the current trading environment "remained challenging due to less product innovation and elevated promotional activity, especially online".

Sportswear retailer JD Sports has warned of challenging trading conditions following a drop in like-for-like sales in January, resulting in growth of just 0.1% in the last quarter.

Like-for-like sales in Ireland and the UK fell 3.2% in the fourth quarter, a drop it blamed on a higher proportion of clothing sales in its mix than in other regions and a decision not to discount as much as some online rivals.

It said clothing sales were weaker than footwear. 

The company said total sales grew 3.6% to £10.5bn (€12.26bn) while gross margins were 47.3%

The retailer, which sells Nike, Adidas and other sports fashion ranges, said its pre-tax profit for the year to February 4 would meet guidance it downgraded in January, in the range £915-935m (€1.06-1.09bn).

Chief executive Regis Schultz said on Thursday morning that the current trading environment "remained challenging due to less product innovation and elevated promotional activity, especially online".

Nike, one of JD Sport's biggest brands, warned last week of lower sales in its first half as it battles newer brands.

"We anticipate trading conditions will improve as we move through the year, helped by a busy sporting summer and softer comparatives with last year," Mr Schultz added.

JD Sports said trading since its year-end had been in line with its expectations, and its initial guidance for pre-tax profit for the year ahead was between £900m (€1.05bn) and £980m (€1.14bn).

Shares in the group have fallen 30% in the year to date.

Additional reporting from Reuters.