JD Sports, Britain’s biggest sports retailer, said on Thursday that inflation could push up costs and strikes at ports add to supply chain challenges.

The company’s comments come amid rising energy and other costs in Britain, with fashion retailers Primark and Asos and online grocer Ocado all warning about retail profits.


JD Sports Chief Financial Officer Neil Greenhalgh told Reuters that because its products are mostly shipped from Asia, industrial action at the ports of Felixstowe and Liverpool had exacerbated supply chain problems.

JD, which sells global brands including Nike, Adidas and Reebok as well as private labels such as Pink Soda and Supply & Demand, said UK sales, mainly online, softened in August and early September. Because consumers were slow to take the heavy fall. products such as sweatshirts and track suits while the weather remained relatively warm.


Greenhalgh said that cheaper private label items could perform better than other brands and that the clothing range “Technicals” was the best performer in the segment.

JD, which has more than 900 stores worldwide, said sales were up 8 percent year-on-year in the second half of its fiscal year so far. It reiterated its forecast that profits for the year to January 28, 2023 would be in line with the record performance of a year ago.


Shares in the FTSE 100 company fell as much as 8 percent to 113.95 pence, their lowest level in three weeks, before paring losses to trade 4 percent lower by 08:30 GMT. They were still the biggest percentage losers in the blue-chip index.

Pre-tax profit fell 18 percent to £298.3 million ($335.3 million) for the six months ended July 30, while revenue rose 14 percent to £4.42 billion.


By Abe José Quil-Prambel; Editors: Devika Seemanath and Mark Potter

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