JD Sports’ winning run comes to an end

The group, which operates 350 JD Sports and Size? outlets in the UK, said like-for-like sales excluding VAT in the 16 weeks to November 19 fell 1.5 per cent, compared to 1.6 per cent growth in seven weeks to September 17. The Bury-based retailer said a marked decline in consumer confidence has hit the business since mid-September. It warned that a tough Christmas was coming.

JD Sports has outperformed its rival JJB Sports, which reported a £66m loss at the half year stage, but the wider retail sector has come under pressure amid rising prices, muted wage growth and low confidence. Shares in JD Sports fell following the update.

David Jeary, an analyst at brokers Investec, maintained his forecast for full year pre-tax profits at £72m, which would represent a 13 per cent drop on the previous year. Mr Jeary said: “Falling consumer confidence and pressure on discretionary incomes is not a winning combination for most retailers.”

He added: “While current trading conditions are undoubtedly challenging, JD’s conservative management style, strong roster of brands and international growth opportunities offer more significant longer-term potential.”

The company reported a 1.6 per cent decline in its sports stores, which include JD Sports and Size?, and a 0.9 per cent decline in its 124 fashion stores, which include the Bank and Scotts chains. JD Sports said it was experiencing “adverse pressure” on its profit margins but was working hard to maintain them and reassured investors that it had a “good track record” for making the most of the key festive season.

JD Sports has a number of stores in Yorkshire, including shops in Leeds, York and Bradford.