Companies

JD Sports cuts profit guidance amid tough market conditions

Aug 27, 2026 United Kingdom

The UK-based sportswear retailer has cut its full-year profit guidance amid challenging market conditions, with North America recording the sharpest decline in second-quarter sales

During the second quarter of the 2027 financial year, which ended on the 1^st of August, the group’s organic sales fell by 1.3%, while like-for-like sales dropped by 3.1%, compared to the same period the previous year.

“Trading in the second quarter remained tough. The market stayed highly promotional, reflecting the consumer and footwear product cycle headwinds our industry has faced in recent quarters, whilst our core consumer was impacted by incremental cost-of-living pressures”, said Régis Schultz, CEO of JD Sports Fashion.

In the North American region, JD Sports saw its organic and like-for-like sales decrease by 4.5% and 6.8%, respectively, compared to the second quarter of the 2026 financial year. In addition to a weak consumer sentiment, this reflects a slower quarter for high-heat footwear products, as well as the timing of ‘back-to-school’ demand.

“The UK delivered a good quarter, with strong football replica kit sales and an improved performance in our Outdoor business. Europe’s trend improved slightly versus Q1 against a still-subdued backdrop, supported by resilient Sporting Goods trading”, added Schultz.

In the second quarter, the company’s UK organic sales fell by 0.2%, though like-for-like sales increased by 0.8% compared to the same period last year. In Europe, however, there was a decline in both organic and like-for-like sales, by 0.4% and 2.7% respectively.

By contrast, organic and like-for-like sales in the Asia Pacific region rose year-on-year by 10.2% and 1.4% respectively during the quarter.

First-Half Highlights

In the first half of the current financial year, JD Sports’ organic sales decreased by 0.7% compared to the same period in the previous financial year, and like-for-like sales fell by 2.8%.

The group reported that the gross margin over the last 26 weeks was in line with expectations, having made controlled price investments to maintain competitiveness in a promotional market, although this was partially offset by higher marketing expenditure.

Full-Year Outlook

The sportwear retailer now expects a full-year profit before tax and adjusted items of between 700 and 800 million British pounds (817 to 933 million euros), down from the previous guidance of between 750 and 850 million British pounds (875 to 992 million euros).

“Our guidance reflects a pragmatic view of external market conditions, whilst our cost and capital discipline, coupled with the highly cash-generative nature of our model, keep us on track to deliver unchanged free cash flow of 460m to 520m British pounds”, noted Schultz.

1 GBP = 1,17 EUR

Image Credits: drapersonline.com

United Kingdom Companies JD Sports Quarter Results Results Sportswear