JD Sports Fashion PLC (LON:JD) posted a 13.5% drop in first-half profit, as weakness in its U.S. operations weighed on results. The retailer maintained its full-year outlook but signaled ongoing caution about the trading backdrop.
For the 12 months, the company forecast profit before tax and adjusting items in line with market expectations, which currently range from £853 million to £914 million ($1.15-$1.23 billion), with consensus at £878 million.
First-half profit came in at £351 million for the six months to Aug. 2, compared with £405.6 million a year earlier, in line with guidance issued last month.
Revenue rose 18% to £5.94 billion, with organic sales up 2.7% in what the company described as “a tough trading environment.”
The retailer, which generates close to 40% of sales in the U.S. through its JD Sports, Hibbett, DTLR and Shoe Palace chains, said it expects only a limited effect from U.S. President Donald Trump’s tariffs this year.
Like-for-like sales, released last month, were down 2.5% overall, with declines of 3.8% in North America and 3.3% in the U.K.
“We remain cautious on the trading environment for the second half,” CEO Regis Schultz said.
The board declared an interim dividend of 0.33 pence, unchanged from the same period a year ago.
Source :
https://www.investing.com/news/earnings/jd-sports-profit-slides-135-in-first-half-guidance-unchanged-4252439
