JD Sports Fashion reported a 13.5% drop in first-half profit on Wednesday, citing weak U.S. sales, but reaffirmed its annual forecast and maintained a cautious outlook on market conditions.
JD Sports reports weak first-half as U.S. sales falter – Reuters
The FTSE 100-listed retailer, which generates nearly 40% of its revenue in the United States through its JD Sports, Hibbett, DTLR, and Shoe Palace stores, said it expects only a limited impact from U.S. President Donald Trump‘s tariffs during the fiscal year.
JD Sports expects full-year profit before tax and adjusted items to be in line with current market expectations, which range between £853 million and £914 million ($976.26 million to $1.05 billion), with a consensus at £878 million.
For the first half, which ended August 2, the group posted a profit of £351 million, with revenue rising 18% to £5.94 billion and organic growth of 2.7% in what it described as “a challenging trading environment.”
Like-for-like sales for the first half, published last month, fell 2.5%, including a 3.8% decline in North America and a 3.3% drop in the United Kingdom.
“We remain cautious about the trading environment in the second half,” said CEO Regis Schultz.
JD Sports also backed Nike’s recent leadership change and product reset. Elliott Hill, a Nike veteran with more than 30 years of experience, returned as CEO in October to lead a turnaround effort focused on addressing strategic missteps and improving relationships with key retail partners.
“We think Nike is doing all the right things in terms of resetting the business,” JD Sports Chief Financial Officer Dominic Platt told reporters on Wednesday. Platt noted that Nike products — which account for about 45% of JD Sports’ sales — are “resonating well” with customers again, highlighting the Vomero, Pegasus, and P-6000 running ranges as top performers.
The company’s stock has fallen 43% over the past year, pressured by a promotion-driven market and weaker demand for Nike products. However, recent support and commentary suggest a more optimistic outlook moving forward.
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