JD Sports share price drops 10 per cent as it reports timing of Eid hit sales

 
Caitlin Morrison
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JD Sports said calendar differences had hit sales

JD Sports shares have dropped by 10 per cent this morning after the retailer said calendar differences, and in particular Eid, had hit like-for-like sales.

Eid is a religious holiday celebrated by Muslims to mark the end of Ramadan. JD Sports said the timing of the holiday this year - it ran over the 25 and 26 June - mean the company had to change the timing of its clearance period.

"Therefore, we do not believe our like for like store sales comparatives will be truly meaningful until the end of the first half, by which point the impact of the aforementioned timing differences and the strong comparatives from the performance through last year's Euros tournament will all have fully unwound," said JD chief exec Peter Cowgill, in an AGM trading update.

"Nevertheless, we are pleased to confirm that growth to date in group like for like store sales and further significant growth in the group's online sales have been in line with our expectations."

Cowgill added that while the company has "faced some anticipated margin pressure in achieving the sales growth, the board considers that the group is currently on track to deliver a result for the full year in line with market expectations".

JD impressed investors when it released its results for 2016 in April. The group grew revenue by 31 per cent and pre-tax profit by 81 per cent last year.

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