JD Sports warns of profit fall on muted market growth, Iran war risks
JD Sports Faces Profit Decline Amid Global Uncertainties
By James Davey
LONDON, May 7 (Reuters) - British sportswear retailer JD Sports expects profits to fall for a fourth consecutive year in 2026/27, citing muted market growth and uncertainty over how the Iran war could affect consumer demand and its business.
FTSE 100-listed JD said that while it has no direct exposure to the region, it was concerned about a prolonged crisis.
Potential Impact of Iran War on JD Sports
"Heightened uncertainty may contribute to direct cost pressures, including energy and fuel costs across our store and logistics networks," JD said in a statement on Thursday.
"As well as potential indirect impacts on pricing and consumer demand should input cost inflation emerge," it added.
Profit Guidance and Financial Outlook
WIDE RANGE OF PROFIT GUIDANCE
JD, which makes about 40% of its revenue in North America through its JD Sports, Hibbett, DTLR and Shoe Palace stores, forecast 2026/27 profit before tax and adjusting items of 750 million pounds to 850 million pounds ($1.02 billion to $1.16 billion).
That compares to 852 million pounds in its year to January 31, 2026 which, although in line with expectations, was a 6.4% decline versus the previous year.
Market Reaction and Shareholder Sentiment
JD shares were up nearly 6% as investors took comfort from it saying there had been no material business impact to date from the Iran war, coupled with stronger-than-expected guidance for free cash flow and shareholder returns.
However, the stock was still down 15% so far this year, reflecting pressure on JD's core younger and less affluent customer base, a market driven by promotions and a lack of innovation from Nike, which is resetting its business. Nike products account for about 45% of JD sales.
Sales Performance by Region
For its first quarter to April 25, JD reported a 2.3% fall in like-for-like sales. They were down 0.6% in North America, 4.2% lower in Europe, down 4.0% in the UK and up 5.2% in Asia Pacific.
It noted trading in April was "volatile", while apparel sales outperformed footwear.
Leadership and Boardroom Developments
"Whilst we continue to expect muted market growth in FY27, we remain confident in JD Group's medium‑term trajectory," said CEO Regis Schultz.
Schultz told Reuters he did not think it was true that JD chair Andrew Higginson wanted to remove him from his role.
JD said last month that Higginson would step down in July after just four years as chair. Higginson declined to comment at the time on media reports which said he quit after failing to get board support to oust Schultz.
Reporting Credits
(Reporting by James Davey; Editing by Kate Holton and Alexander Smith)
