UK's JD Sports posts $7.1 bn H1 sales; profit guidance reaffirmed

Profit before tax and adjusting items (PBTAI) fell 13.5 per cent to £351 million (~$419.26 million) during the period under review, with operating profit before adjusting items down 8.2 per cent to £369 million. Adjusted earnings per share were 4.6 pence, compared to 5.15 pence in the prior year. Statutory profit before tax increased 9.5 per cent to £138 million (~$164.24 million), with basic earnings per share nearly doubling to 0.8 pence, JD Sports Fashion said in a press release.

Regionally, North America remained the largest market, delivering £2,318 million in sales with organic growth of 3.1 per cent despite a 3.8 per cent decline in LFL sales. Europe generated £1,921 million, supported by resilient LFL sales (-0.3 per cent) and 6 per cent organic growth. The UK recorded £1,464 million, with organic sales down 1.7 per cent and LFL sales lower by 3.3 per cent due to tough Euro 2024 comparatives, though the new Trafford Centre flagship store performed strongly. In Asia Pacific, sales reached £237 million, with LFL sales down 2.4 per cent but organic growth of 6 per cent.

“We delivered organic sales growth of 2.7 per cent in H1, in what remains a tough trading environment. This demonstrates the resilience of our business, underpinned by our agile multi-brand model, broad geographic reach and unmatched connection with customers,” said Regis Schultz, chief executive officer (CEO) at JD Sports Fashion. “Whilst we remain cautious on the trading environment for the second half, we expect limited impact from US tariffs this financial year, and our full year profit before tax and adjusting items to be in line with current market expectations.”

The company highlighted market share gains in North America and Europe, solid apparel performance, and advances in supply chain investments, including automation at new distribution centres in the Netherlands and United States. JD opened 42 net new stores globally, including flagships in Las Vegas, Vancouver, Melbourne and Manchester’s Trafford Centre, its largest store worldwide.

The company said it remained cautious on the trading environment for the second half of the year, citing continued pressure on consumer finances, elevated unemployment risk, and the ongoing transition in the footwear product cycle. Despite these headwinds, it expects full-year profit before tax and adjusting items (FY26 PBTAI) to be in line with current market expectations.

JD Sports added that while it continues to monitor the potential impact of US tariffs, the financial effect in the current year is anticipated to be limited. Outlook assumptions include LFL sales below FY25, around 10 per cent sales uplift from acquisitions at a 6.5 per cent margin, 75–100 net new stores adding about 4 per cent to sales, and additional operating expenses of over £50 million partly offset by £30 million efficiencies and up to two-thirds of $25 million synergies from the Hibbett acquisition. Capital expenditure is projected at £450–500 million, alongside £200 million in buybacks, added the release.

ALCHEMPro News Desk (SG)