JD sports investors will hope that the retailer can show signs of progress next week after sales were under pressure at the beginning of the year.
The impact of US tariffs and their general performance in the US will be particularly focused when providing a half -year commercial update on Wednesday, August 27.
Business actions have increased a bit higher in the last six months, but they have still firmly decreased during the past year after a profit warning in January and a wide precaution for consumer demand.
In its previous update in May, the sportswear specialist in London revealed that similar sales fell 2% during the quarter until May 1.
However, organic sales grew by 3.1% in the quarter, since the new openings of stores helped compensate for the soft demand of buyers.
In the United Kingdom and Europe, sales were a bit stronger after positive climatic conditions at the beginning of the year.
Jonathan Pritchard, a Peel Hunt analyst, said the business will face “more difficult” comparisons in the second quarter and stressed that “the broader global trends have not been useful.”
He added that he believes that the company is “in a very good place” strategically and could benefit from Nike's new product releases, since the key supplier partner seeks to recover after recent weakness.
However, other analysts indicated that recent problems in Nike and the weak feeling of consumption in the United States will present a continuous challenge for JD Sports.
Danni Hewson, head of financial analysis of AJ Bell, said: “Continuous concerns about the impulse (or the lack of it) in Nike, which faces greater competition of people like ON and Hoka, continue to weigh, even if Nike is not in any way the only brand couple of JD Sports.
“Concerns about broader trends in consumer spending and the impact of Trump tariffs also remain a problem.”
Sales in the United States were firmly lower in the first quarter, so investors expect the company to point out an improved trajectory despite tariff pressure.
JD bosses previously warned that the cost of goods and services in the United States would probably increase due to tariffs, which could result in price increases that can then further weigh demand.
Shareholders will also expect any indication of the retail perspective of the retailer, although JD is likely to hold this to a more exhaustive update next month.
Currently, it is predicted that the group will reveal profits of around £ 890 million for the current financial year, slightly descending the previous year.
