Published: January 4, 2024 at 4:01 a.m. ET
Written by Christian Moes Laursen
Shares in JD Sports Fashion plunged 23%, leading the decline in the FTSE 100 index after the company lowered its outlook for pre-tax profits for the 2024 financial year after weaker-than-expected peak season trading.
As of 0859 GMT, the share price was down 36.15p to 119.30p. The stock price has fallen 12% in the past 12 months.
of…
Written by Christian Moes Laursen
Shares in JD Sports Fashion plunged 23%, leading the decline in the FTSE 100 index after the company cut its pre-tax profit outlook for the 2024 financial year after weaker-than-expected peak season trading.
As of 0859 GMT, the share price was down 36.15p to 119.30p. The stock price has fallen 12% in the past 12 months.
The London-listed fashion retailer said on Thursday that December’s sales were weaker as consumer spending became more cautious across markets and milder weather from late September weighed on apparel sales. The company announced that its revenue growth for the 22 weeks ending on the 30th was lower than expected.
CEO Regis Schultz said: “While consumer caution has increased promotional activity during the peak trading season in our key markets, we continue to grow market share.” said.
The company’s gross profit margin was also lower than expected due to the increased level of promotional activity during the period. As a result, the company expects its gross profit margin for the fiscal year ending February 3 to decline slightly compared to the previous year.
As a result, the company lowered its 2024 comprehensive pre-tax profit forecast from the previous 1.04 billion pounds to 915 million to 935 million pounds ($1.16 billion to $1.18 billion).
Email Christian Moess Laursen at christian.moess@wsj.com.