JD Sports Fashion plc (Group, JD), parent of the DTLR, Finish Line, Hibbett, and Shoe Palace banners in the U.S., and the Blacks outdoor banner, among others, in the UK, Europe and Asia, is reporting that, against a volatile consumer backdrop, overall sales during the peak holiday 2025 period were in line with company expectations. Black Friday reportedly saw strong customer engagement across all regions, but demand apparently softened in the first half of December, particularly in Europe and the UK.

Group organic sales were up 1.4 percent for the nine-week fourth quarter to-date (QTD) period ended January 3. Like-for-like (LFL, comp) sales were down 1.8 percent for the period, said to be “in line” with the 2025 third quarter, which was down 1.7 percent year-over-year.

An improved comp sales trend in North America – JD’s largest market – reached a positive 1.5 percent for the QTD period but was offset by weaker comp trends in Europe (-3.4 percent) and the UK (-5.3 percent). The positive U.S. trend improved sequentially from the negative 1.7 percent comp in the third quarter. The Europe and UK trends were markedly worse than the Q3 comp trend lines.

Sales by Region

The UK-based retailer said it saw continued resilience in apparel sales, reflecting the strength of the product range, while experiencing softness in footwear, as expected, given end-of-cycle product line headwinds, and despite positive momentum in running.

 

“We responded decisively in the final weeks of the period by choosing to make targeted price investments, and we saw improved sales in the immediate run-up to Christmas Day and the period after, demonstrating the strong customer appeal of JD and its complementary fascias (banners), in a challenging market,” Company CEO Régis Schultz offered.

Schultz said they were pleased to see a marked improvement in our like-for-like (comp) sales trend in North America, the company’s largest market, where the Group returned to growth and delivered further market share gains, supported by disciplined execution of  the trading plan.

“JD’s brand awareness continues to grow in the U.S. and, building on this momentum, we have decided to increase our marketing initiatives in North America in the coming year to accelerate our growth plans in the region,” he added.

“Operationally, we continue to exercise strong cost and cash control and expect to exit the financial year with a higher-quality inventory position,” the CEO continued. “Our strategic initiatives are delivering strong progress across the business: we are optimizing our supply chain, continuing to upgrade our online proposition through the ongoing re‑platforming of our e‑commerce channels, and accelerating our digital transformation through the roll‑out of our agentic AI‑driven commerce capabilities. Together, these actions position us well to navigate a fast‑changing retail landscape.”

North America QTD Summary
North America, which now represents 39 percent of QTD sales, saw comps rise 1.5 percent and organic sales post 5.3 percent growth for the nine-week period. Excluding stand-alone Finish Line stores, North America comped up 4.1 percent, supported by a strong Black Friday, peak holiday season performance, and successful new product launches.

The region experienced:

  • Resilient performance in footwear, driven by continued momentum in the running category and strong demand in new retro basketball product launches, partially offset by softness in end-of-cycle product lines.
  • Strong online performance across all key banners, supported by better online product ranges, focused marketing, and controlled price investments, particularly on finishline.com.
  • Conversion to JD of the Finish Line banner (183 stand-alone stores remaining) on track, where “market-driven promotional intensity remains higher than normal in the short term.”

Europe QTD Summary
Europe, which accounted for 32 percent of QTD sales, posted a 3.4 percent comp sales decline over the nine-week period. Organic sales growth was up 0.9 percent. Sales trends were said to be impacted by a cautious consumer environment, with higher promotional participation around Black Friday and the peak holiday season.

Trading in Germany reportedly remained “challenging,” and weaker early‑December sales in France, Spain and Italy gave way to improved trends in the final weeks of the QTD period.

The region reportedly saw “a resilient performance” in apparel, supported by stronger product offerings and demand in outerwear.

“Notwithstanding tough comparatives, especially in end-of-cycle product lines, footwear performance reflected event-driven demand and continued momentum in the running category,” JD noted.

The company reportedly saw strong online performance, supported by ongoing momentum in ‘ship-from-store’ sales and by controlled price investments in the online offering earlier this financial year.

United Kingdom QTD Summary
The United Kingdom domestic region, which delivered 25 percent of QTD sales, posted a 5.3 percent comp sales decline for the period. Organic sales growth was 4.8 percent for the nine-week period. The company said it saw a weaker sequential sales trend in the UK than in Q3, amid a volatile consumer backdrop, with resilient Black Friday and peak holiday season event-driven demand more than offsetting weakness in the first half of December.

UK apparel sales were reportedly supported by good momentum in women’s product ranges and outerwear. Continued softness in footwear was said to be driven by end-of-cycle footwear product lines, partially offset by running sales.

The UK online business, which has a higher sales mix than other regions, remained impacted by market-driven promotions due to short-term footwear cycle dynamics. A resilient brick-and-mortar business was said to be supported by strong conversion rates despite lower footfall.

Asia Pacific QTD Summary
The Asia Pacific region accounted for just 4 percent of QTD and delivered a 2.8 percent comp sales increase during the period. Organic sales grew 9.6 percent year-over-year. Continued comp growth, despite tougher prior-year comparables, was driven by strong performance across footwear and apparel and by strong online sales growth.

Sales by Segment

Fiscal 2026 Outlook
JD said it anticipates the full year (FY26) gross margin percentage for the Group to be approximately 50 basis points lower year-over-year, largely driven by controlled price investments, mainly in the online offer. The nine-month YTD period ended November 1, 2025, delivered a gross margin that was 60 basis points lower year-over-year.

“Looking ahead, we remain confident that our agile, multi-brand, cross-category approach will enable us to outperform the market and deliver strong cash flows and enhanced shareholder returns,” Shultz shared. “For FY26, we expect full year profit before tax and adjusting items to be in line with current market expectations, and free cash flow of ~£400m, underpinned by disciplined execution and a strong balance sheet.”

Inventory levels reportedly remain effectively managed, and JD said it expects to exit the financial year with a higher-quality inventory position year-over-year.

Based on current YTD performance and current indicators, JD said it expects fiscal 2026 profit before tax and adjusting items (PBTAI) to be in line with current market expectations. The Group said it was initiating free cash flow guidance with an expectation of ~£400 million in fiscal 2026, compared to £339 million in fiscal 2025.

The 2027 View
“In our Strategy Update in April 2025, we outlined our view that the global sportswear market would likely grow at 2-3 percent per annum, on average, over the medium term,” JD said as the company wrapped up its report. “Looking ahead to FY27, based on the facts and indicators available to us today, in recognition of (1) the weak spending outlook for our core customer demographic, and (2) the early stages of the innovation pipeline of our major brand partners (particularly in footwear), we currently anticipate a period of muted market growth in FY27.”

Much remains within our control to enable us to outperform the market. In FY27:

  • We are accelerating initiatives across marketing, including digital, data and loyalty, AI, and store optimization, to further strengthen our customer proposition.
  • We will maintain our core trading disciplines but will continue to implement controlled price investments (which we expect will be weighted more towards H127) to stay connected to short-term market and consumer dynamics.
  • We will continue our sharp focus on cost efficiency and productivity to support operating margin expansion over the medium term, particularly in North America and Europe; and
  • We expect the Group to continue generating significant free cash flow, supplemented by disciplined Capex and working capital management. This underpins our commitment to continue delivering significant cash returns to shareholders.

 Image and tables courtesy of JD Sports Fashion plc