JD Sports Shares Tumble as Profits Slide

JD Sports (LON: JD.) shares plunged by more than 8% at the open on Wednesday after the retailer reported a decline in annual profits and highlighted market volatility.

The company posted a statutory pre-tax profit of £715 million for the year to 1 February 2025, down nearly 12% from £811 million the previous year. Adjusted pre-tax profit fell 4% to £923 million, in line with guidance issued in January. 

Operating margins also declined, slipping to 8.2% from 9.0%.

Despite revenue rising 12% on a constant currency basis to £11.5 billion, the group cited increased infrastructure investment and a jump in finance expenses as reasons for the weaker bottom line.

Chief Executive Régis Schultz said: “We increased Group revenue on a constant currency basis by 12%… thanks to our strong and agile, multi-brand model.” However, he acknowledged a “volatile market” and “uncertainty surrounding the impact of U.S. tariff changes.”

The company added that it is monitoring the position regarding tariffs carefully, and that elevated tariffs have the potential to impact the company in three areas: the global economy and JD’s customers, its brand partners, and goods and services not for resale. 

“We look forward into the medium term with confidence that we can continue to outperform the market, improve our profit margin and create significant value for our shareholders,” added Schultz.

The company has begun a £100 million share buyback programme and increased its full-year dividend by 11%. 

First-quarter trading was said to be in line with expectations, though like-for-like sales dropped 2%.

JD Sports completed two major acquisitions during the year — Hibbett in the U.S. and Courir in Europe — as part of its strategy to expand internationally.