Go Outdoors' parent company saw its shares tumble

Shares in the company that owns High Street retailers Go Outdoors, Blacks and Millets dropped 23 per cent on Thursday after it issued a profits warning.

JD Sports said milder weather and consumers spending more cautiously were likely to lead to lower than expected profits for this trading year.

The Bury-based company had expected pre-tax profits of about £1.04bn, but had lowered its forecast to between £915m and £935m.

Shares in JD Sports Fashion closed at £119.70 on Thursday, compared with £155.45 the previous day.

A company statement said like-for-like growth for the 22 weeks up to the 2023 year end was 1.8 per cent. “This was slightly behind our expectations. Apparel revenue growth was impacted by milder weather from the second half of September, while the peak trading season, across the market, was softer and more promotional than we anticipated, reflecting more cautious consumer spending.”

Chief executive Régis Schultz, who was appointed in September 2022, said: “We have made good progress against our five-year strategic plan, delivering global organic revenue growth of 6 per cent in the period, against very tough comparisons with last year, and opening over 200 new JD stores in the year.

“Our key markets have seen increased promotional activity during the peak trading season, driven by a more cautious consumer, but we continue to grow market share. We are confident in our strategy and we continue to invest in our supply chain, systems and stores, supported by our strong cash generation and healthy balance sheet.”

Other outdoor brands owned by JD Sports include Tiso and Ultimate Outdoors. The firm also owns more than 900 sports fashion stores in 21 countries, and trades under nine names in the sports sector, as well as running JD Gyms.

Pentland Group, which owns the Berghaus brand, owns 51 per cent of JD Sports Fashion.