Nike troubles overshadow record sales at JD Sports

JD Sports said it was ‘really happy’ that Nike has a new boss as troubles at the US giant hang over Britain’s ‘King of Trainers’.

The retailer posted record half-year sales of £5billion for the 26 weeks to August 3, thanks to strong demand for its shoes.

But shares fell as the bumper figures were overshadowed by a dismal update from Nike, which typically makes up almost half of JD’s sales. 

Nike told investors quarterly sales this summer plunged 10 per cent in the face of competition from newer brands.

Company veteran Elliott Hill, who started as a Nike intern in 1988 and retired in 2020, returns as chief executive this month to orchestrate a turnaround.

JD boss Regis Schultz said he was confident Hill would help Nike revive its fortunes. ‘We are really happy having him back,’ he said.

‘It is good to have someone from the industry, who knows Nike and the products.’

Schultz said in March that shoppers felt ‘fatigue’ towards familiar designs as brands such as Hoka and ON – which is advertised by actress Zendaya – grow in popularity.

But yesterday he said: ‘We see Nike coming back. Nike will be fine. Nike is a strong brand. That’s only a question of time.’

Exiting Nike boss John Donahoe blamed a lack of innovative ideas on staff working at home.

JD’s Schultz said that selling many different brands, as well as Nike, would protect it.

It said demand for trainers was boosting business but fashion sales in the UK and Europe were hit by bad weather.

Sales in the UK fell 4.6 per cent to £1.2billlion over the half-year due to a wet summer, which has also dampened trading at Primark and H&M.

Profits fell by nearly two-thirds to £126.3million for the period, due to one-off costs such as those related to its takeover of US rival Hibbett and the closure of its Derby warehouse. The business is still on track to become the fourth UK retailer to smash a £1billion yearly profits mark.

It said it was sticking to a profit target of £955million to £1.03billion, which would see it join a select club that includes Tesco, M&S and Kingfisher, the only other UK firms whose earnings have topped £1billion, although Next is also closing in on the milestone.

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