JD Sports Fashion (LON: JD) cut its profit outlook on Thursday after reporting weaker consumer demand and declining sales across most major markets during its third quarter. The UK-based retailer said the tougher economic environment continues to pressure spending, especially among its core customers.
The company now expects profit before tax and adjusting items to land at the lower end of current market forecasts for fiscal year 2026. As of November 14, JD’s compiled analyst consensus sits at £871 million, with estimates ranging between £853 million and £888 million.
In its statement, JD Sports said recent economic indicators show “incrementally weaker” conditions in key markets. Rising unemployment, softer consumer sentiment, and broader macro uncertainty were highlighted as major concerns.
These factors prompted management to take what it called a “pragmatic approach to the FY26 outlook” as the group moves into its peak trading season.
Sales Performance by Region
Group like-for-like sales fell 1.7% for the 13 weeks ending November 1, although organic sales increased 2.4%. Total sales, including acquisitions, rose 8.1% at constant currency to £2.95 billion.
North America
North America, which accounts for 37% of quarterly revenue, produced £1.08 billion in sales. Like-for-like sales dropped 1.7%, but organic sales rose 3%.
Excluding Finish Line stores, like-for-like sales declined only 0.2%. Footwear remained soft due to key product lines reaching the end of their cycle, though the running category showed improvement.
Europe
Europe generated £1.03 billion, representing 35% of quarterly sales. Like-for-like sales slipped 1.1%, while organic sales climbed 4%. Sporting goods and apparel performed well, but footwear continued to face pressure from end-of-cycle styles.
United Kingdom
The UK was the weakest performer. Like-for-like sales fell 3.3%, and organic sales dropped 2%, bringing total revenue to £718 million. JD Sports said unseasonably warm weather hurt apparel sales, while footwear softness persisted, particularly in women’s athletic styles.
Asia Pacific
Asia Pacific delivered the only positive like-for-like result, with sales up 3.9% and organic growth reaching 13.3% to £124 million.
Margins and Operational Updates
Group gross margin, excluding acquisitions, decreased 30 basis points year-on-year due to targeted price investments in online channels. Including the Courir acquisition completed on November 27, 2024, margin slipped 40 basis points.
During the quarter, JD Sports opened a new distribution center in Heerlen, Netherlands. The company also said it remains on track to complete £200 million in share buybacks and continues to generate strong free cash flow.
