Shares in JD Sports Fashion PLC (LON:JD.) plummeted this morning after the sports-fashion retailer hinted that its margins were starting to come under pressure as it looks to sustain recent sales growth.
Back in its full-year results in April, the Bury-based firm saw sales jump by almost a third compared to 2016.
In the first few months of the current financial period, JD said that store sales had to rise while online store sales have also seen “significant growth”.
However, to keep revenues moving higher executive chairman Peter Cowgill said the group had faced “some anticipated margin pressure”.
On track to hit full-year expectations
In the AGM trading update, Cowgill added that JD is still on track to deliver full-year results in line with market expectations.
Eid has also posed a temporary problem at the start of this year. The earlier timing of the religious holiday has led to the retailer adjusting the timing of its clearance sale which will affect current like-for-like sales comparatives.
Cowgill expects these timing differences, as well as the strong sales comparatives from last year’s Euro 2016 football tournament, to have “fully unwound” by the end of the first half though.
The company also told investors that it has opened 28 stores so far in this financial year, including two in its first two stores in Australia and another two in Malaysia.
Interim results for the six months to 29 July are due out on 12 September.
Shares in JD slumped 9.8% to 358.7p in early deals on Thursday.