JD Sports Fashion holds guidance despite softer N America

27th Jun 2023 07:03

(Sharecast News) - Shares in UK sportswear retailer JD Sports Fashion slid on Tuesday as the company warned of softening in its North American markets and a slowdown overall in May, but maintained annual guidance.

The company on Tuesday said it still expected full-year profit to pass £1bn after positive trading in all regions through May with overall growth in organic sales of around 8%, compared with 15% in the first three months of the year.

"This moderation in the growth was in line with management expectations and reflects tougher comparatives in the prior year as the supply chain normalised and the availability of product improved," it added.

The group's UK, Europe and Asia Pacific businesses were also performing well, partly offset by operations in North America which were "experiencing some softening in trade consistent with other businesses in the sector".

"Inventories in our businesses in North America are at normal levels and we will be no more promotional than we need to be to remain competitive," JD Sports said.

Reporting by Frank Prenesti for Sharecast.com