JD Sports Fashion has today reported a 13.5% fall in first-half profit due to weakness in its key US market and stuck to its full-year guidance, though the retailer flagged ongoing caution over the trading backdrop.
The FTSE 100-listed sportswear retailer, which earns nearly 40% of its revenue in the US through its JD Sports, Hibbett, DTLR, Shoe Palace and Finish Line stores, did, however, say it expected only a limited impact from US President Donald Trump's tariffs this financial year.
Shares in the group have lost 43% of their value over the last 12 months, reflecting a market driven by discounts and a drop-off in demand for Nike products, which make up about 45% of its sales.
The company forecast full-year profit before tax and adjusting items in line with current market expectations, which range from £853m to £914m, with a consensus of £878m, down from the £923m it made in 2024/25.
It made £351m in the first half to August 2, with sales up 18% to £5.94 billion and organic growth of 2.7% in what it called "a tough trading environment."
First-half like-for-like sales, published last month, fell 2.5%, with North America down 3.8% and the UK down 3.3%. Still, it gained market share in North America and Europe.
"In an environment of strained consumer finances and evolving brand product cycles, operating and financial discipline remains a core focus for JD, and we are controlling our costs and cash well," CEO Regis Schultz said.
"We remain cautious on the trading environment for the second half," he added.
Meanwhile, Nike's new CEO Elliott Hill got a vote of confidence from one of its largest customers, British sportswear retailer JD Sports, whose finance chief said Nike was "doing all the right things" to revive demand.
Hill, who was with Nike for more than three decades, returned as CEO in October to lead a turnaround at the firm which had been struggling with strategy missteps that soured its relations with retailers.
Under Hill, Nike has been investing in its running shoe and trainers lines to reclaim lost ground in the segments, while rekindling relationships with retailers.
"We think Nike are doing all the right things in terms of resetting the business," Dominic Platt, JD Sports' chief financial officer said.
Platt said new products from Nike were "resonating well" with customers, highlighting the Vomero, Pegasus and P-6000 running ranges.
