JD Sports Cautions on 2026/27 Profits Citing Middle East War Uncertainty
JD Sports Profit Forecast and Market Challenges
Profit Outlook for 2026/27
LONDON, May 7 (Reuters) - British sportswear retailer JD Sports forecast a further fall in profit in its 2026/27 year, reflecting an expectation of muted market growth and uncertainty over the potential impact of the Middle East conflict on its customers and the business.
Revenue Breakdown and Financial Projections
The FTSE 100-listed group, which makes about 40% of its revenue in North America through its JD Sports, Hibbett, DTLR and Shoe Palace stores, on Thursday forecast 2026/27 profit before tax and adjusting items of 750 million pounds to 850 million pounds ($1.02-$1.16 billion).
That compares to 852 million pounds made in its year to January 31 2026 which was a 6.4% decline versus the previous year and in line with expectations.
Market Pressures and Supplier Dynamics
Share Performance and Customer Base
Shares in JD Sports have fallen 19% so far this year, reflecting pressure on the group's core younger and less affluent customer base, a market driven by promotions and a lack of innovation from key supplier Nike, which is resetting its business. Nike products account for about 45% of JD Sports' sales.
Profit Guidance and Geopolitical Risks
The group said it was providing a wider range of profit guidance than it was previously planning for because of the potential impact of a prolonged Iran war, though it noted it has no direct exposure to the Middle East.
Recent Sales Performance
For its first quarter to April 25, JD reported a 2.3% fall in like-for-like sales.
(Reporting by James Davey; Editing by Kate Holton)
