JD Sports Fashion PLC (LSE:JD.) warned of lower revenue and profit through the end of 2024, citing challenging market conditions.
Chief executive Régis Schultz told investors the performance came as the sportswear retail chose not to compete in a more promotional than expected marketplace.
Instead, he says JD maintained trading discipline to deliver gross margins ahead of last year, along with a clean inventory and strong cash management.
“Considering the current headwinds in the market, we performed well, delivering organic revenue growth of 3.4% across the period, and a strong Christmas resulted in LFL revenue growth in December,” Schultz said.
Like-for-like revenue was down 1.5% compared to the prior year in the months of November and December, JD flagged, at the same time it said margins held at around 48%.
JD guided that pre-tax profit (adjusted) would be between £915 and £935 million, full-year organic revenue growth is expected to be around 5%, the retailer added.
"While I am pleased overall with our performance, market headwinds were higher than we anticipated and therefore our full-year profit forecast is slightly below our previous guidance,” Schultz added.
“With these trading conditions expected to continue, we are taking a cautious view of the new financial year."
In early trade, JD shares fell around 10% to 86.73p.