JD Sports has reported a 13.5% decline in adjusted profits to £351 million for the six months to 2 August, citing strained consumer finances and challenging trading conditions. The sportswear retailer, which sells brands such as Nike and Adidas, also warned that annual comparable sales would fall compared with its last financial year.
The company experienced sales declines at established stores across all regions, with North America—its largest market—dropping 3.8%. UK sales fell 3.3% to £1.46 billion, and the retailer closed a net 13 stores in the country as part of efforts to optimise locations. Overall, comparable sales declined 2.5% in the first half.
Chief executive Régis Schultz said: “In an environment of strained consumer finances and evolving brand product cycles, operating and financial discipline remains a core focus for JD. We are controlling our costs and cash well.” He noted a shift in fashion trends away from retro basketball towards running shoes and smaller brands.
JD Sports expects a limited impact from US tariffs imposed by Donald Trump, with direct exposure accounting for less than 10% of US sales, partly due to pre-tariff stockpiling. However, it acknowledged uncertainty over broader tariff effects and US consumer sentiment. The company also reported a 20% rise in overall sales, driven by acquisitions of Hibbett in the US and Courir in France.
Operating costs increased by a fifth to £2.4 billion year-on-year, though JD aims to achieve £30 million in cost savings this financial year. The share price has fallen over 40% in the past year. Charles Stanley’s Garry White commented: “It’s going to be a tricky second half… Consumers are cautious—especially in the UK.”
