Key facts
- JD Sports lowered its full-year profit forecast to £700m-£800m from £750m-£850m.
- Q2 organic sales fell 1.3% globally, with North America down 4.5%.
- Like-for-like sales dropped 3.1% globally in Q2, with North America down 6.8%.
- Footwear sales were soft due to consumer pressures and product cycle evolution.
- Online sales grew 2.6% in Q2, supported by apparel and accessories.
- The company expects FY27 free cash flow of £460m to £520m.
JD Sports Fashion Plc has cut its profit forecast for the full year by £50 million, anticipating profit before tax and adjusting items to be between £700 million and £800 million, down from a previous range of £750 million to £850 million. The company cited a "tough trading environment" driven by weak consumer confidence, particularly in its key US market, and a highly promotional market.
In the second quarter, which ended August 1, JD Sports reported a 1.3% decrease in organic sales and a 3.1% drop in like-for-like sales globally. North America experienced the most significant decline, with organic sales down 4.5% and like-for-like sales down 6.8%. This was attributed to weaker consumer sentiment, a slower quarter for high-heat footwear products, and a shift in 'back-to-school' demand.
Europe also saw a dip in organic sales by 0.4% and like-for-like sales by 2.7%. However, the UK market showed an improved trend in Q2, with positive contributions from apparel and accessories, including strong football replica kit sales, and better performance in its Outdoor business. Online sales grew by 2.6% globally, supported by the apparel proposition and store-based fulfillment.
CEO Régis Schultz stated that the company had to implement price cuts and promotions to remain competitive. He noted that while footwear remained soft, apparel and accessories performed well across regions. The company is maintaining cost discipline and inventory control, and is on track to deliver its free cash flow target of £460 million to £520 million for FY27. JD Sports also commenced the second £100 million tranche of its £200 million share buyback program.