GO Outdoors owner sees £842m wiped off value

JD Sports – the owner of one of the UK’s largest suppliers of fishing tackle – saw £842m wiped off its value in one morning after it reported that its profits will be lower than expectations.

In early trading on Thursday, the group’s shares were down 16%. The owner of GO Outdoors blamed consumer caution in October, increased discounting and mild weather for a drop in sales in its third quarter update delivered to the London Stock Exchange. Régis Schultz, CEO of JD Sports, said: “After a good start to the period, helped by strong back-to-school sales, we saw increased trading volatility in October, particularly in North America and the UK, reflecting elevated promotional activity and mild weather.

“The trading environment remains volatile though and following October trading, we now anticipate full year profit to be at the lower end of our guidance range.” Profit before tax is set to be in the lower range of £955m to £1035m.

Like-for-like sales at JD Sports’ 4,541 stores worldwide was down 1.6% in the quarter but up 6% in its Sporting Goods & Outdoor division which includes GO Outdoors and its Fishing Republic concession.