JD Sports warns of ‘volatile’ trading amid new tariff rules
The company makes just under 40% of its revenues in US.
JD Sports has warned that trading conditions are set to be “volatile” this year amid uncertainty over the impact of changes to US tariff rules.
It came as the sportswear retailer said profits and sales were set to meet forecasts for the past year despite a “challenging” market.
The company, which makes just under 40% of its revenues in US, held firm on targets for next year despite the start of President Donald Trump’s tariff regime.
Shares in JD Sports are among those to have dropped over the past weeks due to its potential exposure to new tariff rules.
It also sells a number of products, such as Nike trainers, which are made in countries such as Vietnam that are facing particularly high levels of import taxes.
Nevertheless, JD Sports stressed that it was too early to calculate what these will mean for its finances and longer-term performance.
“We expect the trading environment in our key markets to be volatile throughout the year and we have started the year in line with our expectations,” the company told shareholders.
“We note the proposed changes to tariffs announced last week. At this stage, the outcome of these developments is uncertain.
“We are in regular dialogue with our brand partners but it is too early to comment on the potential sector impact.”
It came as the high street firm reported a slight increase in revenues for the last quarter, driven by its European business.
The company said like-for-like revenues grew 0.3% in the 13 weeks to February 1, with organic revenue growth of 5.6%.
Like-for-like revenues were also up 0.3% for the year to February.
Meanwhile, JD Sports said it is set to have delivered a pre-tax profit of between £915 million and £935 million for the year, in line with previous targets.
The firm also laid out plans to open another roughly 150 stores this year, complete around 100 store conversions or renovations, and close around 50 shops, mainly in eastern Europe.
