Business
JD Sports shareholders hoping for progress amid US consumer weakness
JD Sports investors will be hopeful the retailer can show signs of progress next week after sales came under pressure at the start of the year.
The impact of US tariffs and its overall performance in the US will be particularly in focus when it provides a half-year trading update on Wednesday August 27.
Shares in the business have ticked slightly higher over the past six months but are still firmly down over the past year after a profit warning in January and broad caution over consumer demand.
In its previous update in May, the London-listed sportswear specialist revealed that like-for-like sales dipped by 2% over the quarter to May 1.
However, organic sales grew by 3.1% in the quarter as new store openings helped to offset soft demand from shoppers.
In the UK and Europe, sales were slightly stronger after positive weather conditions at the start of the year.
Jonathan Pritchard, analyst at Peel Hunt, said the business will face “tougher” comparatives in the second quarter and highlighted that “wider global trends have not been helpful”.
He added that he believes the company is “in a very good place” strategically and could benefit from new product releases from Nike, as the key supplier partner seeks to rebound following recent weakness.
Other analysts, however, indicated that recent troubles at Nike and weak consumer sentiment in the US will present a continued challenge for JD Sports.
Danni Hewson, head of financial analysis at AJ Bell, said: “Ongoing worries over momentum (or lack of it) at Nike, which faces greater competition from the likes of On and Hoka, continue to weigh, even if Nike is by no means JD Sports’ only brand partner.
“Worries about wider trends in consumer spending and the impact of the Trump tariffs also remain an issue.”
Sales in the US were firmly lower in the first quarter, so investors will be hoping that the company can point to an improving trajectory despite pressure from tariffs.
Bosses at JD previously warned that the cost of goods and services in the US was likely to rise because of tariffs, which could result in price increases which may then weigh further on demand.
Shareholders will also be hoping for any indication as to the retailer’s profit outlook, although JD is likely to hold this back until a more thorough update next month.
The group is currently predicted to reveal profits of around £890 million for the current financial year, down slightly on the previous year.
The government on Thursday kept petrol and high-speed diesel (HSD) prices unchanged at Rs253.17 per litre and Rs257.08 per litre respectively, for the coming fortnight, starting from January 16.
This decision was notified in a press release issued by the Petroleum Division.
Earlier, it was expected that the prices of all petroleum products would go down by up to Rs4.50 per litre (over 1pc each) today in view of variation in the international market.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
Meanwhile, most of the transport sector runs on HSD. Its price is considered inflationary, as it is mostly used in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, and particularly adds to the prices of vegetables and other eatables.
The government is currently charging about Rs100 per litre on petrol and about Rs97 per litre on diesel.
One of Britain’s most prolific rail fare dodgers could face jail after admitting dozens of travel offences.
Charles Brohiri, 29, pleaded guilty to travelling without buying a ticket a total of 112 times over a two-year period, Westminster Magistrates’ Court heard.
He could be ordered to pay more than £18,000 in unpaid fares and legal costs, the court was told.
He will be sentenced next month.
District Judge Nina Tempia warned Brohiri “could face a custodial sentence because of the number of offences he has committed”.
He pleaded guilty to 76 offences on Thursday.
It came after he was convicted in his absence of 36 charges at a previous hearing.
During Thursday’s hearing, Judge Tempia dismissed a bid by Brohiri’s lawyers to have the 36 convictions overturned.
They had argued the prosecutions were unlawful because they had not been brought by a qualified legal professional.
But Judge Tempia rejected the argument, saying there had been “no abuse of this court’s process”.
JSW Jetour T2 Launch: JSW Motors Limited, the passenger vehicle arm of the JSW Group, is reportedly preparing to enter the Indian car market this year. It has partnered with Jetour, a China-based automotive brand owned by Chery Automobile, and the Jetour T2 SUV could be the company’s first product, according to the reports.
Media reports suggest that the launch will happen independently and not under the JSW MG Motor India joint venture. The SUV will wear a JSW badge and name, instead of the Jetour branding. The upcoming SUV will be assembled at JSW’s upcoming greenfield manufacturing facility in Chhatrapati Sambhaji Nagar, Maharashtra.
According to the reports, the company plans to have the vehicle on sale by the third quarter of this year. With this move, JSW aims to establish itself as a standalone carmaker in India.
Expected Powertrain
The SUV is likely to arrive with a 1.5-litre plug-in hybrid setup. Internationally, this hybrid powertrain is offered with both front-wheel drive and all-wheel drive options. It is still unclear which version will be introduced in India.
Design
In terms of design, the T2 is a large and rugged-looking SUV. It has a boxy and upright stance, similar to vehicles like the Land Rover Defender. Despite its tough appearance, it uses a monocoque chassis instead of a ladder-frame construction.
Size
The SUV measures around 4.7 metres in length and nearly 2 metres in width. This makes it larger than the Tata Safari, even though it is a five-seater. A longer 7-seat version is also sold in some markets.
Price
Pricing details for India are yet to be announced. For reference, the front-wheel-drive five-seat T2 i-DM is priced at AED 1,44,000 (around Rs 35 lakh) in the UAE.
Jetour
Jetour is a brand owned by Chinese automaker Chery. Launched in 2018, it focuses mainly on SUVs and is present in markets across China, the Middle East, Africa, Southeast Asia and Latin America.
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