Britain's JD Sports flags little profit growth even without tariff hit

By James Davey

LONDON (Reuters) -British sportswear retailer JD Sports forecast little or no profit growth this year, even before any potential impact from U.S. tariffs, with the trading environment in its key markets expected to be "volatile".

Prior to Wednesday's update, shares in FTSE 100-listed JD had lost over a third of their value this year on worries about consumer spending amid a downturn in demand for Nike products, which account for about 45% of JD's sales.

Its stock was up 8% in afternoon trading after JD forecast current year profit in line with market expectations.

With just under 40% of its sales made in the U.S., the group is also exposed to newly imposed U.S. tariffs, which the guidance did not account for.

In the U.S., the group operates businesses including Finish Line, Shoe Palace and Hibbett.

JD, which also sells Adidas, On, HOKA and other sports brands from nearly 5,000 stores worldwide and online, said the outcome of the tariffs "is uncertain".

"We are in regular dialogue with our brand partners but it is too early to comment on the potential sector impact," it said.

For the year to February 1, 2025, JD forecast profit before tax and adjusting items in line with its guidance in January of 915 million to 935 million pounds ($1.17-$1.20 billion).

Fourth quarter like-for-like revenue growth was 0.3%, while total revenue growth was 5.6% in a market described as "challenging".

JD said it had started the 2025/26 year in line with its expectations and forecast a profit outcome in line with analysts' current consensus expectation of 920 million pounds. It forecast growth in total revenue, but lower like-for-like revenue, before any potential impact from tariffs.

The group also updated on its medium-term plans, saying it would focus on growth, profitability and improved returns. It plans a reduction in capital expenditure and launched an initial 100 million pound share buyback programme.

($1 = 0.7803 pounds)

(Reporting by James Davey; Editing by Sachin Ravikumar and Jan Harvey)