FTSE 100 retailer JD Sports remains on course to break the £1bn profit barrier for the first time in its 42-year history despite slower sales growth in May and a softening in the US market.

The group, which is the exclusive retail partner of the the Scottish Football Association, said in a trading update at its annual general meeting that overall growth in organic sales fell to 8% in May. That was down from 15% in the first three months of the financial year.

“This moderation in the growth was in line with management expectations and reflects tougher comparatives in the prior year as the supply chain normalised and the availability of product improved,” the company said.

While its businesses in the UK, Europe and the Asia-Pacific region continued to perform well in June, this was partially offset by operations in North America where the group said it is "experiencing some softening in trade consistent with other businesses in the sector".

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The business, which specialises in sports fashion and outdoor wear, is popular among young shoppers whose desire for "must-have" trainers and kit has proven more resistant to the consumer belt-tightening that has accompanied the cost-of-living crisis. With more than 3,400 stores across 38 countries and territories, it has also benefitted from its size and geographical spread.

"Brand power is still a powerful force, and even as belts are tightened elsewhere, the desire for the latest must-have trainers or kit isn’t showing signs of slowing down dramatically," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Official Scotland football jerseys are sold exclusively by JD, which in March sold out of the special edition 150th anniversary shirt within hours of release.

But despite the resilience in demand for its goods to date, AJ Bell investment director Russ Mould cautioned that "even the most successful retail businesses" can go through bad patches when faced by economic headwinds.

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“We continue to see many trainers from the likes of Nike sell out as soon as they go on sale, creating a buzz about the products which makes consumers want them even more," Mr Mould said. "Many people see trainers as collectibles and they are happy to pay high prices in the belief they could be worth even more in the future.

“Yet if the recession clouds darken over the economy, particularly in North America, then there is a risk that the demand dynamic could change because of affordability factors.”

The group, which has 444 stores in the UK and Ireland, has been growing rapidly in recent years. It opened a net additional 32 JD stores during the four months to the end of May and said it is on track to open more than 150 stores under the JD fascia over the course of the financial year.

The group is also closing in on the £452m acquisition of France's Courir, which trades from more than 300 stores across six European countries. The deal is expected to conclude later this year and includes a cash payment of approximately £282m while taking on roughly £169m of the French company's debts.

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JD Sports posted a pre-tax profit of £991.4m for the year to January 28, a record result that was ahead of guidance and up from £947.2m a year earlier. It then said in May that it expected profits to exceed £1bn for the first time.

"The board maintains its view that the headline profit before tax and adjusted items for the year end 3 February 2024 will be in line with the current average consensus expectations of £1.04bn," Jd said. "The board also expects that the phasing of the profit in the current year will reflect a normalised trading pattern with approximately 35% of profits generated in the first half."

Shares in JD closed yesterday's trading in London 4p lower at 142.6p, a decline of 2.7%.