Shop prices are still rising, but at a slower rate, while interest rate increases could push UK into recession this year
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UK high street retailer JD Sports has reiterated that its profits will hit market expectations this year, despite a slowdown in the US.
Ahead of its AGM today, JD Sports reports that sales grew by 8% in May, a slowdown on the 15% growth reported earlier in the year.
The positive trends have continued through June in the Group’s businesses in the UK, Europe and Asia Pacific although the growth from these regions is partially offset by the businesses in North America which are experiencing some softening in trade consistent with other businesses in the sector.
Inventories in our businesses in North America are at normal levels and we will be no more promotional than we need to be to remain competitive.
“The risk is the data continue to prove unresponsive to the BOE’s actions and interest rates rise further than our baseline.
As borrowing costs move above 5%, we think the risk of a financial stability shock increases exponentially.”
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