New year downers are becoming normal at JD Sports | Nils Pratley
It wasn’t a full-on profits warning – more of a 5%-ish trim to forecasts.But JD Sports’ trading update will feel particularly disappointing to its shareholders because this was the second January in a row that the sportswear retailer has delivered a new year downer on profit expectations.The spiel was also identical, more or less.A year ago, the group blamed “more cautious consumer spending” and “an elevated level of promotional activity during the peak trading period”.On Tuesday it cited “a challenging and volatile market that saw increased promotional activity” as revenues fell 1.
5% at established stores in November and December,The only meaningful difference is that last year offered an opportunity to whinge about the weather – too mild to flog fleeces, apparently, which wasn’t the case this time,The consistency in the messaging suggests something fundamental has shifted in the once-reliable market for trainers and “athleisure” apparel,Increased discounting doesn’t arise from nowhere,One can speculate, first, that the big brands have pushed prices as far as they can reasonably go for the time being.
Second, JD Sports is being caught in the backwash of Nike’s troubles (share price down by a third in a year), including its effort to reset by clearing old stock by going directly to consumers.Third, newer and nimbler rivals – the likes of Hoka and Roger Federer-backed On – are making a bigger impact at the fashion end and changing market dynamics.Fourth, the whole “athleisure” trend simply isn’t as buzzy as it used to be.There isn’t much JD should obviously be doing differently strategy-wise.Its role in the ecosystem is to have the shiniest stores, cosy up to Nike and Adidas to bag sweetheart access to exclusive lines and generally try to present a “premium” image.
So chief executive Régis Schultz’s choice to maintain “pricing discipline” – refrain from grubby discounting, in other words – is reasonable for the time being.When full-year underlying profits should still be within a £915m-£935m range, versus £917m a year ago, you don’t mess too much with the formula.It is easier to climb on to the cut-price treadmill than get off it.And it’s not as if JD is under any debt pressure.It can also console itself that the discounting pressures are concentrated in the UK and US markets.
A global retailer, as JD is these days with 4,500 stores in 36 countries, cannot expect every part of its empire to be buzzy at the same time.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionThe problem, of course, is that hoping for gentler conditions in the UK and US could prove a long wait, which is exactly what was signalled in the line about “taking a cautious view of the new financial year”.In those circumstances, a 6.4% fall in the share price, taking it close to a post-pandemic low of 90p, was a reasonable reaction.There’s no crisis at JD, obviously.
But the soft patch, as it appeared a year ago, is starting to become the normal state of affairs.
Ajla Tomljanović’s horror Australian Open streak continues with loss to Diana Shnaider
Local hopes have been dissolved on a rainy Wednesday afternoon at Melbourne Park, as weather suspensions wreak havoc on the Australian Open schedule.Play stopped on all but the three indoor courts for much of the afternoon, leaving dry fans inside John Cain Arena to watch a valiant Ajla Tomljanović eliminated in the second round for the sixth time. Russian 12th seed Diana Shnaider edged the important points and held off a late comeback to win 6-4, 7-5 in an hour and a half.The Australian, who has struggled with a knee injury in the past 12 months, was disappointed to lose but took positives from the defeat. “ I moved probably the best that I’ve moved a long time, it just gives me a lot of confidence moving forward,” she said
Maro Itoje’s promotion an admission of England’s urgent need for fresh impetus | Robert Kitson
England no longer announce their new captains with a grand theatrical flourish. Back in 1996 Bath’s Phil de Glanville had to lie down in the back of the taxi taking him to Twickenham so no one could identify the skipper poised to replace Will Carling before he was unveiled dramatically from behind a large curtain like a nervous contestant in Stars in Their Eyes.Fast forward to 2025 and Maro Itoje, the 136th man chosen to lead his country, was not even present for his inauguration. People like to talk about spreading the rugby gospel and here was another example of how not to do it. A good news story (if not for poor old Jamie George) and a once-in-a-lifetime opportunity for Itoje to strike a smiling pose for the snappers and propel English rugby back on to the front pages? Nah, we’ll just stick out a bog-standard press release
Novak Djokovic breaks grand slam record before surviving scare
Few things have come easily for Novak Djokovic in these early days of his 21st grand slam season, but the most successful player in the history of the game continued his attempts to build momentum on an incredibly familiar court, Rod Laver Arena, and trust with his extremely unfamiliar new coach, Andy Murray. Despite a difficult test against a fearless, young opponent, Djokovic shut the door on Jaime Faria, a qualifier, as he reached the third round of the Australian Open with a 6-1, 6-7 (4), 6-3, 6-2 win.By stepping onto Rod Laver Arena on Wednesday afternoon, Djokovic set a new record for the most grand slam matches played in the history of tennis, overtaking his former rival Roger Federer’s count with 430 matches. “When I was a kid, the first image I had of tennis was watching the Wimbledon final at four or five years old,” said Djokovic. “Grand slams are definitely the most important tournament in the world in our sport, it has been over 130 years of existence of this incredible event
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Police report says former MLB pitcher Brian Matusz died at 37 of likely overdose
The former Baltimore Orioles pitcher Brian Matusz died at the age of 37 after an apparent drug overdose, according to police documents.The Orioles announced Matusz’s death last week. According to a report by the Phoenix Police Department obtained by the Baltimore Banner, Matusz’s body was found by his mother, Elizabeth, on 6 January after she went to check on him in his home. A lighter, straw and a small square of aluminum foil, often used for ingesting drugs, were near his body. The report says police are not treating the death as suspicious
Man charged with stalking Caitlin Clark disrupts court hearing
A man charged with stalking and harassing basketball star Caitlin Clark was rebuked after becoming disruptive during a court appearance on Tuesday.Michael Lewis, of Denton, Texas, was arrested on Monday at a hotel in Indianapolis, where Clark plays for the Indiana Fever, after allegedly sending threatening messages to the WNBA star, some of which were sexual in nature.The 55-year-old Lewis sat back in his chair when he entered Marion County Superior Court and said “guilty as charged”. He went on to interrupt the proceedings on several occasions, saying “I guess you got the wrong guy”. He also said “I need my medicines” when the court asked him if he had any mental health issues
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