British retailer JD Sports Fashion PLC recently shared its interim results for the first half of fiscal year 2025-26, concluding on August 2, 2025. The company reported a significant 20% increase in sales at constant exchange rates, totaling £5.94 billion (approximately $7.1 billion), primarily driven by its acquisitions of Hibbett and Courir. Organic sales saw a modest growth of 2.7%, although like-for-like (LFL) sales fell by 2.5%, alongside a decrease of 60 basis points in the gross margin, which now stands at 48%.
In terms of profit, the period witnessed a 13.5% decline in profit before tax and adjusting items (PBTAI), down to £351 million (around $419.26 million). Operating profit before adjusting items also dropped by 8.2% to £369 million. Adjusted earnings per share were reported at 4.6 pence, a decline from 5.15 pence in the previous year. Contrarily, statutory profit before tax rose by 9.5% to £138 million (about $164.24 million), with basic earnings per share nearly doubling to 0.8 pence, according to JD Sports Fashion’s press release.
Regionally, North America emerged as the largest market for JD Sports, generating £2,318 million in sales despite a 3.8% drop in LFL sales, supported by an organic growth rate of 3.1%. Europe contributed £1,921 million, showcasing relatively stable LFL sales at -0.3% and 6% organic growth. The UK market recorded £1,464 million in sales, with organic sales down 1.7% and LFL sales falling 3.3% due to challenging comparisons from Euro 2024, although the newly opened flagship store at Trafford Centre showed promising performance. In the Asia Pacific region, sales reached £237 million, with LFL sales declining by 2.4% but benefiting from organic growth of 6%.
Regis Schultz, CEO of JD Sports Fashion, stated, “We delivered organic sales growth of 2.7 per cent in H1, in what remains a tough trading environment. This demonstrates the resilience of our business, underpinned by our agile multi-brand model, broad geographic reach, and unmatched connection with customers.” He added a note of caution regarding the trading environment for the latter half of the year, although he anticipates limited impact from US tariffs this financial year, aligning full-year profit before tax and adjusting items with market expectations.
The company reported gains in market share in both North America and Europe, showcasing strong performance in apparel and advancements in supply chain investments, particularly automation in new distribution centers in the Netherlands and the United States. JD Sports opened 42 net new stores globally, including flagship locations in Las Vegas, Vancouver, Melbourne, and Manchester’s Trafford Centre, their largest store globally.
Despite the achievements, JD Sports expressed caution about the trading environment for the second half of the year, citing pressure on consumer finances, heightened unemployment risk, and ongoing shifts in the footwear product cycle. However, they expect full-year PBTAI to remain consistent with current market expectations.
The retailer indicated that while it monitors the potential effects of US tariffs, the financial implications for the current year are expected to be minimal. Key forecasts included anticipated LFL sales below those of FY25, an approximate 10% sales increase from acquisitions at a 6.5% margin, the addition of 75–100 net new stores contributing about 4% to sales, and expected additional operating expenses exceeding £50 million, partly countered by £30 million in efficiencies and potential synergies of up to $25 million from the Hibbett acquisition. The company’s capital expenditure is projected to be between £450–500 million, along with £200 million allocated for buybacks.
Overall, JD Sports sales growth reflects the company’s strategic acquisitions and market adaptations, ensuring that it remains resilient amid evolving economic challenges. The focus on expanding market share will be crucial as the company navigates its path forward in the competitive retail landscape.
