Yahoo Finance JD Sports shares slip following quarterly drop in U.K. sales
Investing.com -- London-listed shares in JD (NASDAQ:JD) Sports (LON:JD) fell sharply on Friday after the athletic apparel retailer posted a drop in domestic sales in the first quarter.
Sales in the U.K., the company's home market, slid by 6.4%, with JD Sports saying it faced a "tough" comparison versus the year-ago period. Chief Executive Regis (NASDAQ:RGS) Schultz told reports the decline was due to inclement weather and volatility in Britain due to its "larger penetration of apparel" in the country, Reuters said.
Overall like-for-like sales also dipped by 0.7% in the thirteen weeks to May 4, although analysts at RBC Capital Markets said this was better than their forecasts for a drop of 4% thanks to strength in the U.S. and Europe. They added that JD Sports's promotional activity "remained elevated" but was restrained in Britain.
For the full year ended on February 3, adjusted pre-tax income slumped by 8% to 917.2 million pounds. The seller of big-name brands like Nike (NYSE:NKE) and Adidas (OTC:ADDYY), which previously issued a profit warning in January, said it was making "strategic progress in a challenging market."
"JD has the opportunity to broaden its customer demographic in the U.S. and other regions, and to improve its online offer, particularly in Europe," the RBC analysts said in a note to clients.
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