Sales of trainers dive as cost of living pressures hit JD Sports performance
Summary
JD Sports has lowered its expected profits because people are buying fewer trainers due to higher living costs. The company saw sales fall in the US and Europe, with particularly big drops in North America, and expects this trend to continue for the rest of the year.Key Facts
- JD Sports sells sports shoes and apparel, including brands like Nike and Adidas.
- The company cut its full-year profit forecast from £750m-£850m to £700m-£800m.
- Sales dropped 3.1% overall in the second quarter, with North America sales falling 6.8%.
- Inflation and rising fuel prices, linked to the US-Israeli conflict near Iran, affected consumer spending.
- JD Sports had to lower prices and offer promotions to encourage buyers.
- UK sales were stronger due to World Cup-related football merchandise and outdoor gear.
- The company runs 4,800 stores worldwide, including chains like Blacks and Millets in the UK.
- Experts say consumers are becoming more careful about buying non-essential items as inflation continues.
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