Port strikes blow as JD Sports profits fall

JD SPORTS has warned that port strikes are hitting supplies after profits slumped more than £50m in the first half of its financial year.

The chain said the end of US stimulus cheques sent profits down after giving the company a £100m boost last year and that walkouts at UK ports now threaten to delay receiving products, as workers in Liverpool continue to stage a two-week strike over pay. Felixstowe, the other major port JD Sports uses, was hit by strike action last month.

The retailer said these actions “cause a bit of disruption and a potential delay in receiving products”.

It comes as JD Sports warned that the rest of the year would bring “widespread macroeconomic uncertainty, inflationary pressures and the potential for further disruption to the supply chain with industrial action a continuing risk in many markets ... It is inevitable that we remain cautious about trading through the remainder of the second half ”.

The retailer posted pre-tax profits of £383.5m for the first half of 2022, compared to £439.5m a year earlier, which chief financial officer Neil Greenhalgh said was down to “significant growth in the US last year because of the government putting large amounts of money into the economy ... That probably benefited us by £100m last year and so, if you strip that out, then we are seeing a decent level of profit growth across the rest of our businesses”.

Revenues were up at £4.4bn in the first half of its financial year to July 30, compared to £3.9bn a year earlier.

It said it would be better protected than other retailers over supply bottlenecks given its younger demographic. Mr Greenhalgh said: “They make their purchasing decisions often on emotions rather than economics.” Shares fell more than 5pc yesterday, compounding a fall that has seen its value almost sliced in half over the past year.