JD Sports has issued steady third-quarter trading, with total sales rising 8.1% at constant currency rates, though the retailer has cautioned on weaker near-term consumer indicators ahead of its crucial peak trading period.
The sportswear giant reported group like-for-like sales down 1.7% for the 13 weeks to 1 November, with organic growth of 2.4%. Performance varied significantly across regions, with Asia Pacific emerging as the standout performer.
JD Sports has been under pressure for some time, so today’s lackluster results won’t come as a surprise to investors. To some extent, they were to be expected.
North America, representing 37% of Q3 sales, saw like-for-like sales decline 1.7%, though organic growth reached 3.0%. Excluding Finish Line stores, the picture improved considerably with like-for-like sales down just 0.2%. The region experienced continued softness in footwear as key product lines reached end-of-cycle, though the running category showed encouraging momentum.
Europe delivered resilient results with like-for-like sales down 1.1% but organic growth of 4.0%. The region’s sporting goods businesses performed well, with apparel sales proving robust against softer footwear demand.
JD said the launch of Italy’s new e-commerce platform showed promising early results.
The UK remained the most challenging market. Like-for-like sales fell 3.3%, though this represented an improvement on Q2’s trajectory. Unseasonably warm September weather impacted apparel sales and outdoor businesses, whilst the online business faced market-driven promotional pressures.
The retailer now anticipates FY26 profit before tax and adjusting items will fall within the lower end of current market expectations, noting the critical importance of Q4’s peak trading period.
Despite near-term headwinds, the company maintains it is “controlling what we can well” through strict operating and financial discipline.
“JD has thrown caution to the wind regarding its near-term outlook, citing weaker macroeconomic and consumer data points as the reason for cutting its full-year profit guidance,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“While that’s disappointing, the longer-term opportunity ahead looks promising given its strong market position. Trading at just 6.3 times next year’s earnings, the valuation offers plenty of upside potential if it can return to growth in key markets. And if investors are patient enough to ride out some uncertainty over the next couple of years, it could prove to be a very attractive entry point.”
JD shares were flat at the time of writing.