While the active lifestyle footwear market spent half the week talking about the continued strength of the running footwear business – both performance and lifestyle – along comes Régis Schultz, CEO of JD Sports Fashion plc – the parent of the Hibbett, JD, Finish Line, DTLR and Shoe Palace banners in the U.S. and multiple other sports, outdoor and footwear banners across Europe and Asia Pacific – telling the market that the footwear business in the second quarter “remained tough,” reminding the market that the rest of the business has challenges.
“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,” Schultz shared in the company’s 2026 second quarter (Q2) and first half (H1) trading (sales) release.
He said North America saw the “most acute impact,” reflecting a slower quarter for high-heat footwear product and 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,” he noted. “Europe’s trend improved slightly versus Q1 against a still-subdued backdrop, supported by resilient Sporting Goods trading.”
The company reported that Group total sales declined 2.5 percent year-over-year (y/y) to £2.81 billion. Group organic sales for the second quarter declined 1.3 percent (following a 0.1 percent dip in Q1) while like-for-like (LFL, Comp Store) sales declined 3.1 percent after declining 2.5 percent in the first quarter. Organic sales growth excludes acquisitions and disposals, and is calculated at constant FX rates.
Fiscal 2027 Second Quarter Sales by Region
North America
The company’s largest region delivered 35 percent of Group sales in Q2 (FY26: 38 percent), saw total sales reach £1.07 billion in the second quarter, reflecting an organic sales decline of 4.5 percent and an LFL sales decline of 6.8 percent.
Excluding Finish Line stand-alone store organic sales, organic sales dipped 1.0 percent in the second quarter, which was said to reflect “weaker core consumer sentiment amidst the broader cost-of-living backdrop, and deferred July ‘back-to-school’ demand into the first half of August.” Within this, the JD banner reportedly delivered “a resilient performance,” with softer trends across other regional banners.
Footwear performance in North America was said to reflect a slower quarter for high-heat product, alongside tougher comparatives (due to the shift in the product launch schedule from Q1 into Q2 in the prior year) and ongoing softness in end-of-cycle footwear product lines. This was reportedly partially offset by continued momentum in the performance-based running category and newer footwear styles.
Apparel & Accessories saw good performance in the quarter, particularly in women’s ranges, and across the company’s owned brands. Apparel is a smaller proportion of the category mix in North America relative to other regions.
A “resilient online performance” was said to be supported by better online ranges, focused marketing and controlled price investments.
Conversion of the Finish Line banners (145 stand-alone stores remaining) to the JD banner is reportedly on track, where market-driven promotional intensity remains higher than normal in the short term.
Europe
The company’s second-largest region represented 34 percent of Q2 Group sales, reached £1.06 billion in the period, with organic sales dipping 0.4 percent y/y and LFL sales declining 2.7 percent for the period. Sales trends reportedly continued to be impacted by a subdued consumer environment, amidst a promotional market.
Continued resilient trading in the Sporting Goods businesses (in Iberia, Greece and Cyprus) provided support to the regional trend.
Footwear performance reflected ongoing softness in end-of-cycle product lines, partially offset by event-driven demand, and sales of performance-based running and seasonal fashion lines.
Apparel & Accessories had a “good performance,” reportedly supported by a strong product offer and growth in owned brands.
Online performance was said to be “resilient,” supported by ongoing momentum in “ship-from-store” sales.
United Kingdom
The home region provided 26 percent of Q2 Group sales at £804 million, with organic sales dipping 0.2 percent and LFL sales inching up 0.8 percent year-over-year.
JD reported an improved sales trend in the region, driven by Apparel & Accessories, which undoubtedly received a World Cup lift. Still, the company said the underlying performance remained challenged, particularly in footwear, amidst a promotional market. The Outdoor business also delivered an improved performance, contributing to the positive UK trend.
Footwear softness was said to be driven by end-of-cycle footwear product lines, partially offset by sales of performance-based running and seasonal fashion lines.
Apparel sales were supported by strong sales of football (soccer) replica kits, and continued momentum in owned brands and women’s product ranges.
The Online business – with a higher proportion of sales mix versus other regions – remained impacted by market-driven promotions due to short-term footwear cycle dynamics. Still, the positive store LFL trend was said to be supported by good conversion despite lower footfall (traffic).
Asia Pacific
While representing just 5 percent of Q2 Group sales at £152 million, the region delivered organic sales growth of 10.2 percent y/y and an LFL trend of 1.4 percent growth year-over-year.
The continued LFL growth came despite tougher prior year comparatives, driven by a good performance across footwear and apparel, and strong online sales growth
Outlook
The Group reminded investors that when it had reported its fiscal year-end numbers in May it had set out expectations for a period of “muted market growth” in fiscal 2027 (FY27), shaped by a weaker spending outlook for the core customer demographic and ongoing product cycle evolution at some of the major brand partners, particularly in footwear.
“Against this backdrop, H1 trading also reflected incremental cost-of-living pressures on our core consumer from continued inflation (including higher fuel prices), as well as ongoing product cycle evolution in footwear at some of our major brand partners – including a slower cycle for high-heat product in the second quarter – both of which proved more acute than expected in North America,” the Group said in Thursday’s release.
“Noting our underlying H1 sales trends and the promotional market backdrop, which may persist into H2, we now anticipate profit before tax and adjusting items of £700 million to £800 million in FY27,” which is down from the previous range of £750 million to £850 million.
Free cash flow guidance was unchanged, with free cash flow between £460 million to £520 million, reflecting ongoing cost and capital discipline.
“Consistent with the approach outlined in our FY27 framework, we remain focused on ‘controlling the controllables’ and advancing our key strategic priorities at pace,” the Group concluded. “This includes our accelerated initiatives around ranging, store footprint optimisation, digital, AI, data and loyalty to strengthen our customer proposition, alongside sustained cost, capital and working capital discipline – underpinning the strength of our free cash flow and our commitment of cash returns to shareholders.”
Image courtesy JD Sports Fashion plc
