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.
The British sportswear retailer said group like-for-like sales, which strip out the impact of new or closed stores, fell 3.0% in the 13 weeks to Aug. 2, with its UK market down 6.1%.
The company attributed the weaker performance in Europe and the UK to tough comparisons with last year's Euro 2024 soccer tournament and softer footwear sales as some key product lines reached the end of their cycle.
"Across our regions and fascias, in general we see a resilient consumer, albeit very selective on their purchases," CEO Régis Schultz said in a statement.
"We therefore remain cautious on the trading environment going into H2."
Despite the caution, JD Sports said it expects to meet current market expectations for full-year profit.
The new buyback follows a recently completed 100 million British Pounds program and reflects the company's confidence in its medium-term growth prospects, it said.
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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.