JD Sports says cost-of-living squeeze hitting sales despite football kit boost

Susannah Streeter, chief investment strategist at Wealth Club, said: “JD Sports is offering another glimpse of the darkening clouds gathering over the US economy, with American shoppers looking considerably more cautious. The sneaker is fast becoming a canary in the coal mine for confidence. Like-for-like sales fell by 6.8 per cent in North America, which accounts for 35 per cent of JD sales, with weaker demand for the latest must-have footwear. More consumers are resisting the lure of hyped brands, which is not surprising when the jobs market is weakening and inflation is still such a concern.

“Consumers may still be spending, but they are becoming more selective about discretionary purchases, particularly when household budgets are already under pressure. However, the UK market showed more resilience, with like-for-like sales up 0.8 per cent, while Asia Pacific continued to perform strongly. Inventory remains well controlled, with JD not sitting on piles of unsold goods, and the company remains in a net cash position before leases, giving it some protection while trading conditions remain difficult.”