JD Sports shares jump despite warning on profits amid Iran uncertainty.


JD Sports Fashion shares jumped on Thursday despite a warning that current-year profits would be lower as it continued to wrestle with muted market growth due to a weaker spending outlook for consumers and uncertainty caused by the Iran war.

JD Sports Fashion

Source: Sharecast

The company widened full-year earnings guidance to £750m - £850m, lower than fiscal 2026's profit before tax and adjusting items of £852m, down 7.7% year on year.

It added that although the retail chain had no direct exposure in the Middle East, “we continue to closely monitor the evolving situation and its potential impact on the consumer and our business if the crisis is prolonged”.

"Heightened uncertainty may contribute to direct cost pressures, including energy and fuel costs across our store and logistics networks," the company said in a statement. Despite the cautious outlook JD Sports shares were up almost 9% in London trade.

"As well as potential indirect impacts on pricing and consumer demand should input cost inflation emerge," it added.

Like for like sales in the first quarter to April 25 fell 2.3%.

JD, which also owns the Finish Line chain in the US, warned sales were likely to be affected by “ongoing product cycle evolution at some of our major brand partners, particularly in footwear”, referring to issues at Nike which is facing increased competition.

Analysts at Shore Capital said: "While we already forecast a drop in PBT to £819m based on the expectations of further LFL decline, the potential impact of the Iran war on both costs and demand point to a more conservative view."

"The big question for potential investors is when we will have finally reached the nadir for profits and start to see a much-needed recovery in margins alongside the top-line growth."

Reporting by Frank Prenesti for Sharecast.com

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ISIN: GB00BM8Q5M07
Exchange: London Stock Exchange
Sell:
74.08 p
Buy:
74.18 p
Change: 1.12 ( 1.53 %)
Date:
Prices delayed by at least 15 minutes

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