JD Sports Fashion Shares Tumble After Profit Warning on Weak US Trading

Shares in JD Sports Fashion plunged on Thursday after the sportswear retailer cut its full-year profit guidance, citing tough trading conditions in North America and a highly promotional market.

The group now expects profit before tax and adjusting items of £700m to £800m for FY27, down from the previous £750m-£850m range, after group like-for-like sales fell 3.1% in the second quarter to 1 August, worse than the 2.5% decline in the first quarter. Organic sales dropped 1.3% in the quarter, against a 0.1% dip previously.

North America, JD’s largest market at 35% of quarterly sales, bore the brunt, with organic sales down 4.5% and like-for-like sales down 6.8%. The group blamed weaker consumer sentiment amid cost-of-living pressures, a slower quarter for “high-heat” footwear releases, and back-to-school demand shifting later than usual. Excluding standalone Finish Line stores, North American organic sales fell a more modest 1.0%.

Footwear remained soft across all regions as brand partners’ product cycles evolve, though apparel and accessories performed well, including strong football replica kit sales in the UK. The UK delivered the standout regional performance, with like-for-like sales up 0.8%, while Asia Pacific continued to grow strongly, up 10.2% organically.

Chief executive Régis Schultz said trading remained “tough” in the quarter, but pointed to resilience in apparel, online growth of 2.6%, and disciplined cost and inventory management. The group said it remains in a net cash position and has begun the second £100m tranche of its £200m annual share buyback.

Free cash flow guidance of £460m-£520m was left unchanged. Full half-year results are due on 23 September.