JD Sports Fashion said that trading at its North American operations slowed somewhat in June, but this will be mitigated by continued growth in demand for trendy sportswear and footwear in the UK, Europe and Asia-Pacific.
Despite the slowdown in US and Canadian markets, the UK retailer stuck to an estimated pre-tax profit of around £1.04 billion ($1.32 billion) for the 12 months to the end of January.
JD Sports notes that competitors in North America are seeing a similar trend. in May,
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prospects fell due to a sharp drop in demand as US consumers cut back on discretionary spending.
The group, which trades from around 3,400 stores in 32 countries, has
quickly expanded
driven by interest from young adult shoppers less swayed by rising bills and who looked to JD for special access to Nike and Adidas products.
Within JD Sport’s broader business, constant currency organic sales growth moderated to around 8% in May, compared with 15% growth in the first three months of the fiscal year, in line with expectations.
In its North American operations, JD said inventories were at normal levels and the company would not promote more than necessary.
Shares in JD are up 16% this year. ($1 = £0.7849) (Reporting by Sarah Young; editing by James Davey)
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