JD Sports has issued a profit warning, now expecting its full-year profit before tax to fall between £915 million and £935 million, a significant decrease from its previous estimate of £955 million to £1.03 billion. CEO Régis Schultz has attributed this adjustment to heightened market headwinds affecting retail performance. Despite these challenges, JD Sports reported a 1.5% increase in like-for-like revenue for December, indicating some resilience in consumer spending during the holiday season. The company operates a total of 4,541 stores globally, having expanded its footprint with the acquisition of Hibbett, which added 1,224 stores to its portfolio. However, the overall market remains challenging, particularly in the sportswear sector, as companies navigate changing consumer behaviors and economic uncertainties stemming from the recent U.S. election and adverse weather conditions. [3e7fbb4f]
In related economic news, the UK pound has risen by 0.16% to $1.2220, amidst ongoing pressures on the UK government regarding fiscal rules, particularly facing scrutiny from Rachel Reeves. Meanwhile, Ocado has reported a robust 17.5% revenue growth to £715.8 million, contrasting with JD Sports' struggles. Additionally, the UK 30-year gilt yield has decreased to 5.407%, down from 5.472%, reflecting shifts in the financial markets as the US dollar approaches a two-year high. These developments highlight the complex interplay between retail performance and broader economic indicators in the UK. [3e7fbb4f]