JD Sports Cuts Profit Outlook Amid North American Sales Decline
JD Sports Faces Profit Pressure as North American Sales Weaken
By James Davey
LONDON, Aug 20 (Reuters) - British sportswear retailer JD Sports on Thursday lowered its profit outlook as it reported a steeper decline in second-quarter underlying sales, particularly in its key North American market.
Sales Performance Across Regions
FTSE 100-listed JD, which makes over a third of its sales in North America, said group like-for-like sales fell 3.1% in the 13 weeks to August 1, having fallen 2.5% in its first quarter.
North America and Europe
They were down 6.8% in North America and 2.7% lower in Europe, but rose 0.8% in the UK and 1.4% in Asia Pacific.
Factors Impacting Sales
JD said its performance in North America reflected weaker consumer sentiment, a slower quarter for high-heat footwear products, and deferred back-to-school demand from July into the first half of August.
It said the footwear category remained soft across the group, given pressure on consumers and what it called "ongoing product cycle evolution" across key brand partners.
JD also highlighted a "highly promotional" market, "which may persist into H2."
It said apparel and accessories had a good performance in all regions.
Market Challenges and Customer Base
Pressure on Core Customer Base
PRESSURE ON CORE CUSTOMER BASE
Shares in JD have lost about a quarter of their value over the last two years, reflecting pressure on its core younger and less affluent customer base, a market driven by promotions and a lack of innovation from Nike, which is resetting its business and accounts for more than 40% of group sales.
Profit Forecast and Analyst Expectations
The group is now forecasting a full-year 2026/27 profit before tax and adjusting items of between £700 million and £800 million ($952 million-$1.09 billion).
That compares with previous guidance of £750 million to £850 million and with £852 million made in 2025/26.
Prior to Thursday's update analysts were on average forecasting £781 million.
CEO Statement
"Our guidance reflects a pragmatic view of external market conditions," CEO Regis Schultz said, adding: "We remain confident in our long-term strategy."
($1 = 0.7349 pounds)
(Reporting by James Davey; Editing by Kate Holton)
