JD Sports has revealed a slump in UK sales, amid mounting concern that brittle consumer confidence will damage retailers.
Revenues in established UK shops fell 6.6% as the leisurewear company struggled to beat strong trading last year, when it received a boost from the men’s Euro 2024 football tournament and women’s growing taste for sports footwear such as Adidas’s Samba and Gazelle.
The company said it had invested in cutting prices online amid “tough comparatives”, especially on footwear for women and children.
The sales slide in the UK in the 13 weeks to 2 August contributed to a 3% fall in underlying group sales in the period, with sales increasing only in the Asia Pacific region.
Sales in the US fell 2.3%, although this was better than had been expected amid the impact of new import tariffs introduced by the Trump administration this year.
Despite falling sales, shares in JD rose 5% on Wednesday morning, reflecting relief that the company confirmed it was still on track to produce full-year profits in line with expectations – although those have been downgraded in recent months. The company also announced a £100m share buyback.
The poor UK sales for JD, however, are likely to increase fears of a tougher consumer environment, which hit retail share prices across the London stock market on Tuesday.
Régis Schultz, the chief executive of the retail group, which operates the JD Sports fashion chain globally but also owns the Finish Line and Shoe Palace chains in the US, Sport Zone and Courir in mainland Europe, and Blacks and Go Outdoors in the UK, said: “Across our regions and fascias, in general we see a resilient consumer, albeit very selective on their purchases. We therefore remain cautious on the trading environment going into [the second half of the year].”
He said there had been an “improved performance” in the US after several product launches were deferred into the second quarter and stronger sales trends in clothing and online. In mainland Europe and the UK he said there was “a good underlying performance” in clothing and newer footwear lines despite tough market conditions.
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In another sign of concern about the future for traditional UK retail, Frasers, whose brands include the Sports Direct chain and House of Fraser department stores, said it had added We Do Play, the operator of social leisure venues including the Flip Out trampolining indoor adventure parks and the crazy golf specialist Putt Putt Social, to its portfolio.
Frasers’ chief acquisition officer, James France, said: “Today’s announcement marks a significant milestone in our strategy to diversify and create more dynamic consumer and leisure experiences.”