JD Sports: Share price sinks six per cent on market ‘softening’ warning
JD Sports told investors this morning that profit is on track to smash through the billion-pound mark this year as the athleisure giant continues its expansion – but a warning on some ‘softening’ has nonetheless spooked investors.
Ahead of its AGM today, the ‘king of trainers’ said trading remained positive during May – posting organic sales of eight per cent as issues in the retail supply chain showed signs of stabilising.
However, the retailer said growth in the UK and Europe was ‘partially offset by the businesses in North America which are experiencing some softening in trade consistent with other businesses in the sector.’
Under the reign of new boss Regis Schulz, sales in the first leg of the year also showed strength with growth in organic sales reaching 15 per cent.
Schulz, who was the former chief of B&Q, has spent the last year expanding the retail brands presence in the market, previously revealing that he would spend up to £3bn to open over 1,000 new JD Sports in the coming years.
In May, he green-lit a £425m acquisition of leading French sports brand Courir.
“Securing greater control over the long-term development of JD and prioritising the development of the JD brand is a key pillar in our growth strategy in Europe,” Schultz said at the time.
So far this year, JD Sports has opened a further 32 stores and has plans to open up to 150 sites over the next 12 months.