Proactive Investors - JD Sports Fashion PLC (LON:JD) warned that a stronger pound is impacting its bottom line as it tweaked guidance for the full year.
The group said foreign exchange rate headwinds made a £6 million dent in profits in the first half and are predicted to leave a £20 million mark in the second.
This will be mostly counterbalanced by a £25 million contribution to earnings from Hibbett, the US chain it bought for $1 billion earlier this year.
JD is expected to deliver pre-tax profits of £955 million to £1.035 billion for the current year, the same guidance as it gave earlier in the year, after posting £405.6 million in the first half on sales of just over £5 billion.
Organic growth revenue was 6.4% in the six months ended August 3, while operating margins improved slightly to 9% year over year.
"Our acquisition of Hibbett, which completed just before the period end, is a key milestone in our international development and advances the global nature of the group through our strengthened position in the US," said JD chief executive Regis Schultz.
"I remain confident in the delivery of our exciting growth plans for North America and that the Group is well positioned to continue growing share in the world's largest sportswear market."
Investors will be rewarded with a 0.33p interim dividend, up 10% on the year earlier.