A MAJOR sports chain has closed 13 stores as it reported a drop in sales over the last six months.
JD Sports, which has 412 branches in the UK, announced earlier this year it was to shut 50 stores worldwide.
1
The high street retailer, which is known for selling branded footwear and sports clothes, said in its annual results today that it had shut 13 UK stores in the six months to August.
It also reported weaker like-for-like sales and profits over the past half-year, partly linked to a fall in sales amid “strained consumer finances”.
JD Sports shut its Dagenham branch, located in the Heathway Shopping Centre, on September 6.
Boss Regis Schultz told investors on Wednesday that he is “cautious” about trading in the second half of the financial year.
It came as the company reported that group like-for-like sales dropped by 2.5% to £5.94 billion over the 26 weeks to August 2.
Nevertheless, organic sales were up 2.7% and total sales grew by 18% after it was buoyed by deals to buy the Hibbert and Courir brands.
The company reported that like-for-like sales dropped by 3.8% in its key North America arm and were down 3.3% in the UK.
JD Sports said its weaker UK trade was “affected by tough prior-year comparatives due to the Euro 2024 football tournament”.
It said this particularly knocked replica football shirt sales over the period.
JD Sports also reported that adjusted pre-tax profits dropped by 13.5% to £351 million over the half-year.
The group said this is in line with guidance and means it is still on track to meet its targets for the year.
Its UK business saw operating profits before adjusting items and lease interest fall 6.2% due to higher labour costs, property costs and investments in technology and cyber resilience.
Mr Schultz, chief executive of JD Sports, said: “We delivered organic sales growth of 2.7% in H1, in what remains a tough trading environment.
“This demonstrates the resilience of our business, underpinned by our agile multi-brand model, broad geographic reach and unmatched connection with customers.
“In an environment of strained consumer finances and evolving brand product cycles, operating and financial discipline remains a core focus for JD, and we are controlling our costs and cash well.
“Whilst we remain cautious on the trading environment for the second half, we expect limited impact from US tariffs this financial year, and our full-year profit before tax and adjusting items to be in line with current market expectations.”
As well as the store closure announcements in April, JD Sports also said its shake-up would include 150 new openings and 100 relocations and conversions.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
