JD Sports claims 'resilient' sales but City not convinced
JD is doing what it can, but it's a tough trading environment right now which is reflected in the numbers. ii's head of investment runs through these half-year results.
23rd September 2026 09:01
by Victoria Scholar from interactive investor
JD Sports Fashion (LSE:JD.) has reported half-year like-for-like sales down 2.8%, with organic sales down 0.7%. First-half earnings also disappointed, dropping 19.7% to £282 million. However, the tracksuits to trainers chain maintained guidance for full-year profit of between £700 million and £800 million, and it enjoyed a strong performance in apparel and accessories, with sales up 4% year-on-year, offset by weakness in footwear.
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The company called it a "resilient performance", but struck a cautious tone, highlighting a tough trading environment, with near-term headwinds such as the ongoing geopolitical and macro volatility.
Its consumer backdrop has been challenging, with cost-of-living pressures hampering demand. The company is also being forced to engage in greater promotional activity to stimulate demand which weighs on margins.
JD's key North America market has been struggling with a 4% drop in like-for-like sales amid a softer consumer, leading to lower spending on premium trainers, purchase delays and a disappointing footwear product cycle. While the company has no direct exposure to the Middle East, it is dealing with second-round effects from inflation that is hurting its core target market.
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The struggles at Nike also have a knock-on effect on JD Sports as one of its most significant brand partners. The sportswear giant has fallen out of fashion amid fickle consumers who no longer see Nike products as highly desirable. Preferences have shifted towards newer, more exciting, nimble brands like On and Hoka, hurting the longstanding market leaders.
The silver lining in today’s report is that JD has refrained from cutting guidance after last month’s weak trading update when it issued a profit warning. And despite a brief bounce at the market open, the company remains in a tough spot with no signs that macro headwinds are subsiding. The shares are deep in the red year-to-date and remain vulnerable.
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