By James Davey
LONDON (Reuters) -British sportswear retailer JD Sports Fashion forecast annual profit at the lower end of market expectations, saying it was mindful of recent weak economic and consumer indicators in its key markets.
The FTSE 100-listed group, which makes nearly 40% of its revenue in the U.S. through its JD Sports, Hibbett, DTLR and Shoe Palace stores, said it was taking a “pragmatic approach” to its profit outlook ahead of the peak trading period.
Prior to Thursday’s update, analysts were forecasting a 2025/26 profit before tax and adjusting items of 853 million pounds to 888 million pounds ($1.11-$1.16 billion), with a consensus of 871 million pounds, down from the 923 million pounds made in 2024/25.
Shares in the group were down 1% in early trading, extending losses over the last 12 months to 30%, reflecting a weak economic backdrop, a market driven by discounts and a drop-off in demand for Nike products, which make up about 45% of its sales.
JD Sports reported a 1.7% fall in like-for-like sales for its third quarter, which ended on November 1, an improvement on the previous quarter’s 3.0% decline.
Like-for-like sales were down 1.7% in North America, down 3.3% in the UK and down 1.1% in Europe. They rose 3.9% in Asia Pacific.
The group highlighted a “solid” performance in apparel but “continued softness” in footwear, with positive momentum within the running category offset by “end-of-cycle” for key product lines.
“We continued to make good progress with our strategic objectives in the quarter, against what remains a tough market backdrop,” CEO Regis Schultz said.
Analysts reckon JD Sports’ sales of Nike products should improve as Nike’s reset gains momentum and the 2026 soccer World Cup in North America approaches.
The group said in September it expected only a limited impact from U.S. President Donald Trump’s tariffs this financial year.
($1 = 0.7657 pounds)
(Reporting by James Davey. Editing by Sarah Young and Mark Potter)
