JD Sports sees 'challenging' market as January sales slip

(Sharecast News) - UK retailer JD Sports Fashion warned of "challenging" trading conditions after a weak January resulted in flat like-for-like fourth-quarter sales. The sportswear chain said it expected full-year profits to be within guidance of £915m-935m. Like-for-like sales in Britain and Ireland fell 3.2% in the fourth quarter, due to a higher proportion of clothing sales than in other regions and less discounting compared with online rivals.

Clothing sales were weaker than footwear, the company added in a trading update.

Chief executive Regis Schultz flagged that the current year would be tougher due to less product innovation and more discounting, but expected sales to pick up on the back of the Paris Olympics and European football finals in the summer.

Like-for-like sales in the final quarter rose just 0.1%, with January slightly down year-on-year due to elevated promotional activity in the market, particularly online, and against a very strong comparative of 25% growth a year earlier, he said.

Reporting by Frank Prenesti for Sharecast.com