The UK sports retailer JD Sports has revealed that its full-year profit expectation is marginally lower than its prior projections. According to an industry analyst, the company’s strict stance on promotions may have deterred budget-conscious buyers.

JD Sports reported a 1.5 per cent decline in like-for-like (LFL) revenue for the nine weeks ending 4th January 2025, citing a difficult and unstable market with heightened promotional activity.

Nonetheless, it claimed to have produced a “strong Christmas with December LFL revenue up 1.5 per cent,” with its stores exceeding its online channel and its footwear sales increasing and surpassing clothes.

The company’s sporting goods and outdoor division enjoyed a high LFL revenue performance during the quarter, while weaker LFL trade in the UK and North America was somewhat offset by LFL sales growth in Europe and Asia Pacific.

According to the retailer, Hibbett outperformed the larger North American firm in terms of recent acquisitions, whereas Courir did well in the weeks after the acquisition.

JD Sports also stated that their LFL revenue for the current year is flat and that it anticipates this level of revenue to be maintained throughout the entire year.

It anticipates a full-year organic sales growth of around 5 per cent, with the period’s organic revenue growth being 3.4 per cent.

Due to its ongoing discipline in pricing and promotions, both in-store and online, gross margins are still strong. According to reports, the period’s gross margins are higher than those of the previous year, with a full-year gross margin of about 48 per cent anticipated, which is consistent with last year’s.