JD Sports First Half Profit Drops Nearly 20% as North America Sales Decline
JD Sports Financial Performance and Market Challenges
First-Half Profit Decline
LONDON, Sept 23 (Reuters) - British sports and fashion retailer JD Sports reported a 19.7% drop in first-half profit on Wednesday, hurt by weakness in its key North American market, but maintained the full-year earnings outlook it downgraded last month.
Market Pressures and Share Performance
Impact on Customer Base and Promotions
The group's shares are down 10% over the last year, 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 JD's sales.
Financial Results Overview
Profit and Sales Figures
JD made a profit before tax and adjusting items of £282 million ($375.4 million) in the six months to August 1 on sales down 0.7% to £5.9 billion.
Regional Sales Performance
North America Sales Decline
Group like-for-like sales fell 3.1% in its second quarter, with North America down 6.8%.
Future Outlook and Analyst Expectations
Profit Forecasts
The group, which has over 4,800 stores across 51 countries, kept its forecast for a full-year 2026/27 profit before tax and adjusting items of between £700 million and £800 million, down from the £852 million made in 2025/26.
Analyst Projections
Prior to Wednesday's update analysts were on average forecasting £727 million for 2026/27.
Additional Information
($1 = 0.7513 pounds)
(Reporting by James Davey; editing by Sarah Young)
