UK's JD Sports warns US tariffs could hit prices and demand
LONDON: British sportswear retailer JD Sports posted a 2% fall in first-quarter underlying sales and warned that higher prices in its key U.S. market from President Donald Trump's tariffs could hit customer demand.
JD, which makes nearly 40% of its sales in the United States through its Finish Line, Shoe Palace and Hibbett brands,
warned in April
that profits would only grow slightly, if at all this year, even before any potential impact from tariffs.
The company is facing headwinds from a promotional market, worries over consumer spending and a drop off in demand for Nike products, which account for 45% of its sales.
The group said on Wednesday that while it had limited visibility on the impact from tariffs, it was taking action by further diversifying the range of countries from which it sources goods.
The biggest potential impact would be a rise in the price of products for consumers which could impact demand and dent confidence.
'Our strong and agile multi-brand model positions us well to navigate these market conditions and we are focused on controlling our cost base,' JD said in its statement.
In the medium term, it said it remained confident of delivering improved shareholder returns.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
US cuts Chinese medicine purchases threefold in April, according to customs data
MOSCOW, June 8 (Bernama-Sputnik/RIA Novosti) -- The United States drastically cut down the purchase of Chinese medicines in April, with imports in monetary terms showing a threefold drop to US$173.6 million compared to March, RIA Novosti calculations based on US customs data revealed on Sunday. The shipments of Iodine drugs made up the largest share of supplies in April, accounting for 75 per cent of Chinese medicine exports to the US. Additionally, antibiotics (9.5 per cent) and hormonal products (4.4 per cent ) also accounted for significant volumes of shipments in money. The major sellers of drugs to the US in April were India (19 per cent of US imports), Ireland (14 per cent) and Switzerland (13 per cent). China, with a 12 per cent share, ranked 12th, along with Hungary, Denmark and Japan. China and the US are now essentially in a state of trade war, which erupted after US President Donald Trump imposed a 10 per cent tariffs on imports of all Chinese goods in February, raising it to 20 per cent in March. After several reciprocal measures, the US tariff against Chinese goods reached 145 per cent, and the rate for US suppliers to China hit 125 per cent. However, already in mid-May, China and the US mutually reduced trade tariffs to 10 per cent, from May 14 for 90 days. Consequently, China started imposing a 10 per cent tariff on US imports, while the US levied a 30 per cent tariff on Chinese products as the 20 per cent "fentanyl" tariff remained in effect. In late spring, the sides accused each other of violating preliminary agreements. - Bernama-Sputnik-RIA Novosti
The Star
5 hours ago
- The Star
Vietnam exports up as US tariff threat lingers
HANOI: Vietnam's exports rose sharply last month, official figures showed Friday (June 6), as the communist country tries to negotiate relief from swingeing tariffs threatened by US President Donald Trump. May exports stood at US$39.6 billion, according to data from the General Statistics Office, up 17 percent on the same period a year ago, while the year-to-date total reached US$180.2 billion, 14 percent higher than in 2024. Vietnam, a major centre for global brands producing shoes and clothes, says it is making progress in talks with Washington to head off Trump's threatened 46 percent levy. The Southeast Asian manufacturing hub has the third-biggest trade surplus with the United States after China and Mexico, putting it in the firing line for Trump's "Liberation Day" global tariff blitz. Vietnam's overall import-export turnover stood at $78.6 billion in May, 15.5 percent higher than the same month last year. Imports were up by 14.1 percent year on year to stand at $39 billion in May. Processed industrial goods dominated exports, while imports were led by production materials. Despite the tariff uncertainty, the United States remained Vietnam's number one export market with $57 billion in the first five months of 2025 -- up from $44 billion over the same period a year ago. Vietnamese and US trade negotiators meeting in Paris this week agreed to step up the pace of their talks. Vietnam has signed several agreements to buy hundreds of millions of dollars' worth of agricultural products and other raw materials from the United States as it seeks to rebalance their trading partnership. Trump's real estate group also broke ground last month on a $1.5-billion luxury golf resort in Vietnam, while his son Eric Trump has been scouting locations for a potential tower project in Ho Chi Minh City, the country's southern business hub. - AFP
New Straits Times
6 hours ago
- New Straits Times
US cuts chinese medicine purchases threefold in April
MOSCOW: The United States drastically cut down the purchase of Chinese medicines in April, with imports in monetary terms showing a threefold drop to US$173.6 million compared to March, RIA Novosti calculations based on US customs data revealed on Sunday. The shipments of Iodine drugs made up the largest share of supplies in April, accounting for 75 per cent of Chinese medicine exports to the US. Additionally, antibiotics (9.5 per cent) and hormonal products (4.4 per cent ) also accounted for significant volumes of shipments in money. The major sellers of drugs to the US in April were India (19 per cent of US imports), Ireland (14 per cent) and Switzerland (13 per cent). China, with a 12 per cent share, ranked 12th, along with Hungary, Denmark and Japan. China and the US are now essentially in a state of trade war, which erupted after US President Donald Trump imposed a 10 per cent tariffs on imports of all Chinese goods in February, raising it to 20 per cent in March. After several reciprocal measures, the US tariff against Chinese goods reached 145 per cent, and the rate for US suppliers to China hit 125 per cent. However, already in mid-May, China and the US mutually reduced trade tariffs to 10 per cent, from May 14 for 90 days. Consequently, China started imposing a 10 per cent tariff on US imports, while the US levied a 30 per cent tariff on Chinese products as the 20 per cent "fentanyl" tariff remained in effect. In late spring, the sides accused each other of violating preliminary agreements.
