JD Sports says still on track despite N.American slowdown

JD Sports Fashion said there had been some softening in trade in its North American business in June, which would be mitigated by ongoing growth in demand for its trendy trainers and sportswear in the UK, Europe and Asia Pacific. Despite the slowdown in its U.S. and Canadian markets, the British retailer stuck to forecasts for pretax profit to come in at about 1.04 billion pounds ($1.32 billion) for the 12 months to the end of January.

JD Sports Fashion said there had been some softening in trade in its North American business in June, which would be mitigated by ongoing growth in demand for its trendy trainers and sportswear in the UK, Europe and Asia Pacific.

Despite the slowdown in its U.S. and Canadian markets, the British retailer stuck to forecasts for pretax profit to come in at about 1.04 billion pounds ($1.32 billion) for the 12 months to the end of January. JD Sports noted competitors in North America were seeing a similar trend. In May,

Foot Locker Inc downgraded its outlook amid a sharp drop in demand as U.S. consumers cut back on discretionary spend.

The group, which trades from about 3,400 stores in 32 countries, has been expanding rapidly

, boosted by appetite from young adult shoppers who are less affected by rising bills and who seek out JD for special access to Nike and Adidas products. Across JD Sport's wider business, organic sales growth at constant exchange rates moderated to around 8% for May from the 15% growth it reported for the first three months of its financial year, in line with its expectations.

In its North American business, JD said inventories were at normal levels and it would not be more promotional than it needed to be. Shares in JD are up 16% so far this year. ($1 = 0.7849 pounds)