JD Sports’ chief executive has dismissed concerns over Nike’s recent poor performance, insisting it “will be fine” as he said the sports giant’s struggles aren’t impacting the retailer’s performance.
When questioned about the impact of the sporting giant’s troubles, Regis Schultz was unfazed, stating that JD’s multi-brand model is delivering strong results, particularly in its key US market.
“We see Nike coming back. Nike will be fine, it is a strong brand, so it’s only a question of time,” stressed the CEO.
Nike withdrew its full-year guidance this morning after first-quarter revenues plummeted 10% as the retailer prepares for new CEO Elliott a former longtime executive at the sportswear brand set to take over from John Donahoe on 14 October.
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By contrast, JD Sports posted record sales and solid profit growth as it outperformed a “challenging and volatile market”.
For the first half ending 3 August, the sportswear giant’s sales rose 5.2% to £5bn as pre-tax profit hit £405m. Schultz put its success down to its multi-brand strategy.
He said: “We sell more than just one brand. We we are delivering. We know how to manage this multi-brand play. This is what we do for living.”
Schultz was bullish on JD’s future prospects, stating it is “on track to deliver our full year objective and our ambitious strategy”.
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