JD Sports Fashion reported a 13.5% drop in first-half adjusted pretax profit, as a tough trading environment and weaker sales at existing stores overshadowed revenue growth fueled by recent acquisitions.
The British sportswear retailer said on Wednesday that profit before tax and adjusting items for the 26 weeks to Aug. 2 fell to 351 million British Pounds.
Sales rose 18% to 5.94 billion British Pounds, driven by the takeovers of U.S. retailer Hibbett and France's Courir.
However, like-for-like sales, which strip out the impact of new or closed stores, fell 2.5% as the company faced a softer footwear market and difficult comparisons with last year's Euro 2024 soccer tournament.
"In an environment of strained consumer finances and evolving brand product cycles, operating and financial discipline remains a core focus for JD, and we are controlling our costs and cash well," Chief Executive Régis Schultz said.
The company said it expects full-year profit to be in line with market expectations and will soon begin a second 100 million British Pounds share buyback program.
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JD Sports Fashion on Wednesday announced a new 100 million British Pounds share buyback program, even as it reported a drop in quarterly like-for-like sales.