JD Sports shareholders hoping for progress amid US consumer weakness

cityam
Aug 24
FTSE 100 retailer JD Sports has seen its stock price slump recently

JD Sports investors will be hopeful the retailer can show signs of progress next week after sales came under pressure at the start of the year.

The impact of US tariffs and its overall performance in the US will be particularly in focus when it provides a half-year trading update on Wednesday 27 August.

Shares in the business have ticked slightly higher over the past six months but are still firmly down over the past year after a profit warning in January and broad caution over consumer demand.

In its previous update in May, the London-listed sportswear specialist revealed that like-for-like sales dipped by two per cent over the quarter to 1 May.

However, organic sales grew by 3.1 per cent in the quarter as new store openings helped to offset soft demand from shoppers.

In the UK and Europe, sales were slightly stronger after positive weather conditions at the start of the year.

Jonathan Pritchard, analyst at Peel Hunt, said the business will face “tougher” comparatives in the second quarter and highlighted that “wider global trends have not been helpful”.

He added that he believes the company is “in a very good place” strategically and could benefit from new product releases from Nike, as the key supplier partner seeks to rebound following recent weakness.

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