LONDON, UK – JUNE 11: Shoppers walk past the JD Sports King of Trainers retail store on Oxford Street on June 11, 2018 in London, England. (Photo by John Keble/Getty Images)
John Keble | Getty Images News | Getty Images
British sportswear retailer JD Sports Fashion Although Nike, which accounts for 45% of sales, is in trouble, it is confident of meeting its annual profit forecast after a multi-brand strategy boosted half-year results.
FTSE 100-listed JD.com, which also sells Adidas, On, HOKA and other brands in the UK, Europe and the US, said on Wednesday its growth plans were on track despite intense competition and promotions.
Nike The company reported disappointing quarterly sales growth on Tuesday and warned its holiday season could be filled with discounts.
Concerns about Nike hit JD Sports shares in early trading. Their shares have fallen 3% to 145p so far this year, losing about 10% of their value.
“We expect short-term growth concerns about demand volatility and Nike's underperformance to continue to weigh on JD.com's valuation,” Investec analysts said in a note.
Nike’s biggest competitor, German sportswear brand adidasgarnering attention with its Samba and Gazelle sneakers, while nimble rivals On and DexHOKA is also grabbing market share.
JD.com Chief Executive Regis Schultz said these brands are helping it outperform the market.
“Our multi-brand model and agility across different brands are the secret to our success,” he told reporters.
He expressed hope for Nike's turnaround and said he was “extremely pleased” with the appointment of Nike veteran Elliott Hill as the sportswear giant's new boss.
In the 26 weeks ended August 3, JD.com reported adjusted pre-tax profits of 405.6 million pounds ($538.8 million), beating analysts' expectations of 384 million pounds.
JD.com reiterated profit guidance for the full financial year of £955 million to £1.035 billion, up from £917.2 million in 2023/24.