JD Sports (JD.L) Stock Dips After Weaker Q3 2024 Sales

Overall revenues dipped slightly for Q3 2024 for the Bury based sportswear retailer with JD Sports CEO, Régis Schultz, citing increased trading volatility for the drop in quarterly sales.

You’ve probably noticed the whole retail landscape has been, let’s say challenging, over the last few years. Interest rates, the invasion of Ukraine, Brexit, in(Liz we don’t Truss)flation, a cost of living crisis & just the general conception that the majority of people are financially worse off than they were 5 years ago. JD Sports on the other hand have seen continued growth as sportswear continues to dominate the retail landscape. Following the opening of 79 new stores this year alone, across Europe & the USA, JD Sports also posted record sales of £5 billion last month. For its third quarter the Greater Manchester born retailer saw revenues dip by 0.3%, with UK sales down 2.4%.

 

 

After a strong “back to school” period in September 2024, there was “increased trading volatility” with heavy discounting in October 2024, milder Autumn weather & consumer caution. Shares in JD Sports (JD.L) were down 15% in Thursday’s afternoon trading as JD Sports also announced its full year profit would come in at the lower end of its £955m to £1.035bn guidance. In the USA where the sportswear retailer has 1200 stores, sales were down 1.5%. As Nike continues to be the top performing brand at JD Sports, accounting for 45% of its overall sales investors were re-assured last month about a multi-brand strategy moving forward. Nike is trying to regain its market share following  competition from new kids on the block like Hoka & On. JD Sports said it was positioned well for the Xmas period.

After a good start to the period, helped by strong back-to-school sales, we saw increased trading volatility in October, particularly in North America and the UK, reflecting elevated promotional activity and mild weather. Against this backdrop, we maintained our commercial discipline, improving gross margin by 0.3%pts while still delivering 5.4% organic sales growth. In addition, we made further, strong progress on our long-term growth strategy including opening 79 new JD stores across the world.

See also

5

News

·September 26, 2024

Take a Look Inside The New Balance St James Quarter Edinburgh Store

Régis Schultz – CEO JD Sports

Keep posted at Sneaker Jobs for further news of the sportswear powerhouse. Also don’t forget to subscribe to Sneaker Jobs & follow @sneaker_jobs to keep up to date with all the latest industry news.