JD Sports delays results, suspends guidance
JD Sports has revealed that all of its stores in the UK, United States and Europe have now closed, and the business is pursuing a number of measures to protect its liquidity.
The closures will have a significant impact on the company’s performance, as it said its physical stores make a substantial contribution to group sales.
Its online websites continue to accept and fulfil orders, but JD Sports warned that the e-commerce division represents only a part of the business and while most territories have recorded a ‘resilient performance’, this will not be able to offset the effect of lost store sales.
“Along with everyone else, the group is experiencing major disruption to our business operations as we seek to protect our colleagues and customers from the effects of Covid-19. Their safety remains our number one priority and we continue to take all appropriate action in line with government advice in our various territories,” said Peter Cowgill, executive chairman.
In light of the uncertainty, the company said it was “not appropriate” to provide financial guidance for the year ending 30 January 2021. And in line with a request from the Financial Conduct Authority, its results will be delayed for at least two weeks.
JD Sports was due to publish its results for the year to 1 February 2020 on 15 April. This is now most likely to happen in the second half of May, although the exact date will be confirmed in due course.
For now, the sportswear retailer insisted that it has a strong balance sheet, net cash resources and substantial working capital facilities to meet the expected decline in sales.
Cowgill concluded: "JD continues to offer a market-leading, multichannel proposition in Sports Fashion Retail and we are confident that we will emerge from the current challenges in a strong position to resume our previous positive momentum.”
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