The fourth-quarter like-for-like sales of British sportswear retailer JD Sports grew at a modest rate of just 0.1 per cent despite the company offering renowned brands like Nike, Adidas, and other sports fashion ranges. Regis Schultz, CEO noted that the trading environment remained arduous during the quarter due to factors such as reduced product innovation and heightened promotional activities, particularly online.

As previously revised in Jan, the pretax profit of JD Sports for the fiscal year ending Feb 4 is expected to decline in the range of £915-935 million. The company’s like-for-like sales declined by 3.2 per cent in Britain and Ireland during the fourth quarter of the current financial year. It attributed this decline to a higher proportion of clothing sales compared to other regions, coupled with a strategic decision to limit discounts, which put JD Sports at a disadvantage against certain online competitors.

The company’s clothing sales remained lower than its footwear sales during the quarter. This prompted one of the company’s key suppliers, Nike to warn it of reduced sales in the first half the financial year as it contends with emerging brands. 

Despite these challenges, JD Sports affirmed its post-year-end trading performance aligned with expectations. Looking ahead, the retailer expects pretax profit for the upcoming fiscal year to range between £900 million and £980 million.