JD Sports says Iran war could hit consumer spending and raise prices
Summary
JD Sports expects lower profits this year because people, especially young customers, are spending less and because of concerns about the war in Iran. The company said the conflict might increase costs and prices, but there has been no direct effect on its stores yet.Key Facts
- JD Sports runs 4,800 stores worldwide, including JD, Blacks, and Millets in the UK.
- The company forecasts profits between £750 million and £850 million this year, down from £852 million last year.
- Sales were flat in the three months to April and rose 2.1% in the year ending January to £12.66 billion.
- UK sales fell by 2.5%, while sales in Europe and the US grew.
- Cold, wet weather and mixed trading patterns affected recent sales performance.
- JD Sports is using automation and artificial intelligence (AI) to make its supply chain more efficient.
- The company plans to close smaller stores and open bigger ones in the UK; it closed 24 stores last year but increased overall selling space by 4%.
- Analysts reduced profit expectations by 5% due to retail uncertainties and challenges with product changes at major brands like Nike.
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