Source: Sharecast
JD Sports said Q2 organic revenues fell 1.3%, widening from the 0.1% decline seen in Q1, while like‑for‑like sales were down 3.1% against a 2.5% fall in the prior quarter.
Footwear remained under pressure amid weaker consumer sentiment and a more muted product cycle at major brand partners, though apparel and accessories were said to have performed well across regions.
Online sales grew 2.6%, helped by stronger apparel and increased store‑based fulfilment, while store footfall was lower year‑on‑year outside of key events.
North America continued to lag, reflecting softer demand, fewer high‑heat footwear launches and a shift in back‑to‑school spending into early August, while the UK delivered an improved trend, supported by apparel, accessories and strong football replica sales, and Europe saw steadier trading in a subdued backdrop, helped by resilient performance in its sporting‑goods businesses. Asia Pacific remained the standout, with double‑digit organic growth.
The FTSE 100-listed group said gross margins for the half were in line with expectations, with controlled price investments offset by higher marketing contributions. Costs and inventory were tightly managed, and JD ended the period in a net cash position before leases. JD also began the second £100m tranche of its £200m annual buyback programme.
Given underlying H1 trends and a promotional market that may persist into H2, JD now expects FY27 pre‑tax profit of £700m to £800m, down from £750m to £850m previously. Free cash flow guidance was maintained at £460m to £520m.
Shore Capital said JD Sports' Q2 update showed a clear slowdown in sales momentum, with a tough consumer backdrop, heavy promotional activity and a lack of high‑heat footwear weighing on performance. The broker described the update as "disappointing", noting that softer trading had fed directly into reduced earnings expectations. Shore Capital said it had trimmed its own pre-tax profit forecasts by around 9% to 10% across the forecast period, but maintained its 75p target price and 'hold' recommendation.
As of 0840 BST, JD Sports shares had sunk 11.84% to 82.40p.
Reporting by Iain Gilbert at Sharecast.com
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