UK's JD Sports Warns on Profit in 'Challenging' Market

A logo is seen outside the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. REUTERS/Hollie Adams/File Photo
A logo is seen outside the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. REUTERS/Hollie Adams/File Photo
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UK's JD Sports Warns on Profit in 'Challenging' Market

A logo is seen outside the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. REUTERS/Hollie Adams/File Photo
A logo is seen outside the newly renovated JD Sports store at Westfield Stratford City in London, Britain, July 30, 2024. REUTERS/Hollie Adams/File Photo

British sportswear retailer JD Sports Fashion downgraded its profit forecast after weaker trading in Britain and the United States and promotional activity at competitors hurt sales, and it warned the outlook was "cautious".
Shares in JD plunged 12% in early deals to a near five-year low of 84 pence, Reuters reported.
JD Sports, which has over 4,500 stores globally, said underlying revenue fell 1.5% in November and December in what it called a "challenging and volatile market".
It cut its profit forecast by as much as 40 million pounds ($48.9 million), or 4%.
The stock had already lost 27% of its value in the last three months on worries about consumer spending and amid a downturn in demand for Nike products, which account for about 45% of JD's sales.
"Market headwinds were higher than we anticipated," Chief Executive Régis Schultz said in a statement on Tuesday. "With these trading conditions expected to continue, we are taking a cautious view of the new financial year."
Peel Hunt analysts said JD's strategy of not discounting to match competitors was the right one.
"The long-term strategy is correct, and JD will continue to lead the market, but we must rein in short-term hopes," they said, adding that JD will benefit from any recovery at Nike.
Nike has warned its turnaround will be a slog after it lost ground in recent years to rivals, including Roger Federer-backed On and Deckers' Hoka, which have lured consumers with fresher and more innovative styles.
JD said while trading during December was stronger, November dragged, and for the 12 months to the beginning of February it expected pretax profit before adjusted items to come in between 915 million and 935 million pounds.
Its previous lower end of guidance had been 955 million pounds. It made 917.2 million pounds in its 2023/24 year.



Fashion Commission Launches 'Traditional Handcrafts Revival in Saudi Fashion' Competition

Fashion Commission Launches 'Traditional Handcrafts Revival in Saudi Fashion' Competition
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Fashion Commission Launches 'Traditional Handcrafts Revival in Saudi Fashion' Competition

Fashion Commission Launches 'Traditional Handcrafts Revival in Saudi Fashion' Competition

Saudi Arabia’s Fashion Commission launched on Tuesday the “Traditional Handcrafts Revival in Saudi Fashion” competition to promote traditional Saudi attire and emphasize Saudi cultural heritage.

The competition, launched in alignment with the Ministry of Culture’s Year of Handicrafts 2025, aims to boost and preserve Saudi cultural identity, while fostering local talent in the realm of creative design.

The competition will equip participants to acquire advanced knowledge about traditional fashion design and Saudi handcrafts, bolstering technical and creative design skills and gaining a deeper understanding of Saudi heritage and architecture.

The winning design will be announced on February 16 and displayed at the Fashion Commission’s exhibition at the Saudi Cup 2025 in celebration of Saudi Founding Day.

Participants will attend a five-day workshop led by expert professionals, with the workshops covering four key areas: traditional fashion design, Saudi heritage and architecture, fashion handcrafts, and creative fashion skills.

Participants are invited to create distinctive fashion pieces that incorporate elements and characteristics reflective of local traditions and design artistry in the Saudi culture.

Following the creative process, participants will submit their creations to be assessed by a specialized panel of experts selected by the Royal Institute of Traditional Arts (Wrth).

The Traditional Handcrafts Revival in Saudi Fashion competition seeks to enhance awareness of traditional handcrafts in the Kingdom, preserve Saudi cultural identity, and develop local talent in the field of creative design by providing training and guidance opportunities to participants throughout the whole duration of the competition.