JD Sports LFL sales return to growth in second quarter

22nd Aug 2024 07:15

(Sharecast News) - Sports apparel and footwear retailer JD Sports Fashion saw a return to like-for-like growth in its second quarter, with its store rollout programme in North America and Europe providing a boost while the UK market remains subdued.

LFL sales were 2.4% higher in the three months to 3 August, following a 0.7% year-on-year decline in the first quarter, as comparatives with last year eased.

Growth was strongest in North America (+5.7%) and Europe (+3.0%), while UK LFL sales fell 0.8% though this was a material improvement from the 6.4% the previous quarter.

JD Sports completed the acquisition of Alabama-based sports fashion retailer Hibbett during the second quarter, beefing up its presence in the North American market with 1,169 stores across 36 states. JD Sports also opened 85 new JD stores during the period.

"We look forward to its contribution to the growth and development of our US business in the coming years," said chief executive Régis Schultz in the trading update on Thursday.

Looking ahead, the retailer reiterated its guidance range for profit before tax and adjusting items of £955m to £1,035m, excluding any contributions from Hibbett.

However, it "continue[s] to be cautious on our outlook" due to a volatile global macro environment.