LONDON: British sportswear retailer JD Sports posted a 2% fall in first-quarter underlying sales and warned that higher prices in its key U.S. market from President Donald Trump’s tariffs could hit customer demand.
JD, which makes nearly 40% of its sales in the United States through its Finish Line, Shoe Palace and Hibbett brands,
warned in April
that profits would only grow slightly, if at all this year, even before any potential impact from tariffs.
The company is facing headwinds from a promotional market, worries over consumer spending and a drop off in demand for Nike products, which account for 45% of its sales.
The group said on Wednesday that while it had limited visibility on the impact from tariffs, it was taking action by further diversifying the range of countries from which it sources goods.
The biggest potential impact would be a rise in the price of products for consumers which could impact demand and dent confidence.
“Our strong and agile multi-brand model positions us well to navigate these market conditions and we are focused on controlling our cost base,“ JD said in its statement.
In the medium term, it said it remained confident of delivering improved shareholder returns.
