JD Sports Fashion Plc in a update warned its full-year profit would be at the lower end of market expectations due to “recent weak macro and consumer indicators in our key markets.”

Q3 Highlights

  • Total Q3 sales including acquisitions +8.1 percent at constant FX rates (9M YTD: +15.7 percent)
  • Improved LFL (like-for-like) sales trend for Q3 in North America (vs Q2: -2.1 percent); resilient LFL sales in Europe (vs Q2: -1.1 percent), and improved UK organic sales(2) trend (vs Q2: -4.5 percent)
  • Solid performance in apparel reflecting strength of the product range; continued softness in footwear with positive momentum within ‘running’ offset by end-of-cycle for key product lines
  • Maintaining trading disciplines with controlled price investments, particularly in online. Q3 gross margin 30bps lower YoY excluding acquisitions (40bps lower YoY overall)
  • Continuing to deliver against strategic objectives; successfully launched automation at Heerlen distribution center for JD Europe store replenishment, and initiated roll-out of new e-commerce platform in Europe (now live in Italy) following successful roll-outs in North America and APAC earlier this year
  • Costs and cash being well controlled, with U.S. integration synergies starting to flow through as guided
  • JD Sports said, “Mindful of incrementally weaker macro and consumer indicators in recent weeks, we are taking a pragmatic approach to the FY26 outlook ahead of our peak trading period in Q4. Anticipate FY26 profit before tax and adjusting items (PBTAI) to be within the lower end of current market expectations.”
  • On track to generate strong free cash flow and complete £200m of share buybacks in FY26

Régis Schultz, CEO of JD Sports Fashion Plc, said, “We continued to make good progress with our strategic objectives in the quarter, against what remains a tough market backdrop. Our multi-brand and cross-category approach, and agility in responding to changing customer trends, are helping us to offset known consumer and industry headwinds. We are also controlling our costs and cash well through our focus on operating and financial discipline. “North America delivered an improved like-for-like sales trend in Q3, alongside resilient trends in Europe. The UK had a better organic sales performance, supported by the continued success of our new flagship store at the Trafford Centre in Manchester. By category, our apparel range is resonating well with customers, providing us with opportunity for growth in underserved key markets. In footwear, notwithstanding known end-of-cycle product headwinds, ‘running’ remains a key trend for our customers and we have a strong product line-up in this area going into our busiest trading period. “We are leveraging the significant investments we’ve made in technology to upgrade our e-commerce platforms across the Group, which are starting to deliver measurable benefits and will serve as a key foundation for the next phase of our digital and omnichannel growth. We also continue to make strides in optimising the Group’s global supply chain. Leveraging state-of-the-art technologies, during the period we launched automation at our distribution centre in Heerlen, the Netherlands – a key milestone in our growth and profitability plans for Europe. “We are navigating a year of volatility in external factors with disciplined execution, reflected in a solid Q3. In the near term, as we enter an important trading period, we are mindful of recent weak macro and consumer indicators in our key markets. These lead us to take a pragmatic approach for our FY26 profit outturn. We remain confident in the overall positive trajectory for our industry and JD Group over the medium term, and this is well reflected in our commitment to enhanced shareholder returns.”

Q3 Performance Highlights:

North America (37 percent of Q3 sales): LFL -1.7 percent and organic sales growth +3.0 percent

  • Excluding Finish Line, North America LFL -0.2 percent; back-to-school trading in line with its expectations
  • Continued softness in footwear, driven by key product lines being at the end-of-cycle. ‘Running’ category seeing good momentum. Solid performance in apparel, albeit a smaller proportion of its category mix in North America
  • Strong online performance, supported by new e-commerce platforms, better online ranges, focused marketing, and controlled price investments particularly on finishline.com
  • Continuing to manage the conversion to JD of the Finish Line fascia, where market-driven promotional intensity remains higher than normal in the short term

Europe (35 percent of Q3 sales): LFL -1.1 percent and organic sales growth +4.0 percent

  • Continued good performance in its sporting goods businesses, with resilient performance in JD
  • Good performance in apparel, supported by stronger product offer. Softer footwear performance against tough comparatives, especially in end-of-cycle product lines and athletic footwear for women and juniors. Resilient customer demand in the ‘running’ category
  • Strong online performance, supported by ongoing momentum in ‘ship-from-store’ sales and the controlled price investments made in the online offer earlier this year. Promising early results from JD Italy’s new ecommerce platform

United Kingdom (24 percent of Q3 sales): LFL -3.3 percent and organic sales growth -2.0 percent

  • Improved sales trends vs Q2, against a tough consumer backdrop and unseasonably warmer weather in September (impacting apparel sales in the month and its Outdoors businesses)
  • Continued softness in footwear, driven by end-of-cycle product lines and tough comparatives in athletic footwear for women. Despite the weather impact, solid performance in apparel, especially for women
  • Online business (higher proportion of sales mix versus other regions) impacted by market-driven promotions due to short-term footwear cycle dynamics; resilient store LFL supported by good conversion despite lower footfall

Group Gross Margin  percent Movement

  • Excluding acquisitions (Courir, acquired on 27 November 2024), gross margin percent for the Group in Q3 was 30bps lower YoY (9M YTD: 40bps lower). As with the first half of the year, this was largely driven by controlled price investments in the online offer
  • For the overall Group, gross margin percent in Q3 was 40bps lower YoY (9M YTD: 60bps lower)
  • Inventory levels continue to be managed effectively, and JD Sports said it is well set up for its peak trading period

Outlook And Guidance:

JD Sports said, “Throughout this year, we have operated in our global markets amid macroeconomic volatility, strained consumer finances, and evolving brand product cycles. Against this backdrop, we have maintained our focus on delivering against our medium-term strategic priorities (as set out in our Strategy Update on 9 April 2025) and maintaining strict operating and financial disciplines to optimise our profit and cash. We believe we are controlling what we can well, as evidenced in our Q3 headlines today.

“Turning to the near-term outlook, recent indicators have shown incrementally weaker macroeconomic and consumer external data points in our key markets. We are particularly mindful of the pressures on our core customer demographic, including rising unemployment levels, as well as near-term volatility around consumer sentiment. Accordingly, and noting the importance of our peak trading period in Q4, we anticipate FY26 profit before tax and adjusting items (PBTAI) to be within the “ end of current market expectations.”

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