ii view: bad month for JD Sports as it battles stiff headwinds
Shares in this global sportswear retailer have fallen 14% in the past month and by two-thirds in five years. Analyst Keith Bowman assesses prospects.
15th September 2026 12:12
by Keith Bowman from interactive investor
Second-quarter trading update to 1 August
- Total Like-for-Like (LfL) sales down 3.1%
- North American LfL sales down 6.8%
- European LfL sales down 2.7%
- UK LfL sales up 0.8%
- Asia Pacific LfL sales up 1.4%
Guidance:
- Now expects full-year adjusted pre-tax profit of £700-800 million, down from a previous £750-850 million and potentially down from last year’s £852 million
Chief executive Régis Schultz said:
"Trading in the second quarter remained tough. The market stayed highly promotional, reflecting the consumer and footwear product cycle headwinds our industry has faced in recent quarters, whilst our core consumer was impacted by incremental cost-of-living pressures.
"Our focus remains on executing against our strategy, and growing our resilience through our increasingly diverse product and omni-channel offer - with growth in apparel and accessories sales, encouraging momentum in performance-based running and newer footwear styles, and online sales up 2.6%.
"We continue to exercise strong cost and capital discipline across discretionary spend, store operating costs, inventory and capex, while also driving further supply chain efficiencies, including automation at our distribution centre in Europe.
"We remain confident in our long-term strategy and my thanks go to our colleagues worldwide for their continued hard work and focus."
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ii round-up:
Global sports-fashion retailer JD Sports Fashion (LSE:JD.) operates 4,766 stores and a series of websites across 35 countries.
Away from JD Sport itself, other store brands include Size?, Shoe Palace, Courir and Sprinter. Outdoor brands owned in the UK include Blacks, Millets and Go Outdoors.
For a round-up of this latest trading update announced on 20 August, please click here.
ii view:
Started in 1981, the Bury headquartered retailer today employs over 90,000 people. Footwear generated most sales during its last financial year at 60%, followed by apparel at 30%, accessories 6.5% and outdoor and other sales such as gym memberships the balance of 3.5%. Gym outlets total just over 100 and are UK situated.
Geographically, North America accounted for most sales during this latest quarter at 35%, followed by Europe at 34%, the UK 26%, and Asia Pacific the balance of 5%. Group rivals include Dick's Sporting Goods Inc (NYSE:DKS) and Academy Sports and Outdoors Inc Ordinary Shares (NASDAQ:ASO).
For investors, the tough economic backdrop across its two biggest markets including higher interest rates in the US, continue to drag on sales. Challenges for key supplier Nike Inc Class B (NYSE:NKE) and an arguable prior lack of product innovation also continue to affect revenue. US trade tariffs and their impact on product costs (many of which are made in Asia) are not to be forgotten, while AI and its impact on jobs for the young, the retailer’s core customer demographic, is worth considering.
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More favourably, management actions to improve performance, including more focused marketing, driving cost savings from previous takeovers and investing in technology to aid online business, are ongoing. Some influence from big sporting events like the football World Cup has aided at least UK sales during this latest quarter. Both product and geographical diversity exist, while more than five consecutive years of growing the dividend leaves the shares on a forecast yield of around 1.7%.
On balance, self-help actions and a consensus analyst fair value estimate just above 100p per share might attract more speculative investors. However, others may prefer to wait for signs of improvement given current consumer headwinds and expected lower annual profits.
Positives:
- Diversity of product, brand name and geographical location
- Management actions to improve performance
Negatives:
- Uncertain economic outlook
- Weather can influence performance
The average rating of stock market analysts:
Cautious buy
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