UK-based sports-related products retailer JD Sports has reported that its like-for-like sales (at stores open for more than a year) have gone up by 10.6 per cent during the five-week period to 2 January, 2016. It mentioned that increase in sales will help it surpass at least 10 per cent the consensus projection from analysts for pre-tax profits of £ 136 million for the year.
On the other hand, its rival, Sports Direct has reported a tough season so far. The company has revised its annual profit target for the second time since last summer. The retailer which earlier made a prediction of £ 420 million, is now expecting sales as low as £ 380 million due to unprecedentedly warm weather; moreover, weak high street footfall faded its store-performance in December last year.
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Both the retailers have established themselves in the global market. While JD Sports recorded £ 1,330.6 million revenue in the year 2014, Sports Direct noted earnings of £ 2.706 billion in the same year. Sports Direct is considered as the UK’s largest sporting retailer that operates over 500 stores globally.
Recently only, the retailer came under the scanner at the British parliament over allegations of not disbursing minimum wages to its employees in compliance with the wage laws. British Government has warned the company that if Wage Laws were ignored, the Government will take strict action against it.