JD Sports shares tumbled 13% in early London trading on Thursday after the British sportswear retailer slashed its full-year profit outlook and reported a second-quarter sales decline of 3.1%, driven by a sharp drop in North America.
The company now expects full-year 2026/27 profit before tax and adjusting items of £700 million to £800 million, down from its previous guidance of £750 million to £850 million. This follows last year’s reported profit of £852 million.
Group like-for-like sales fell 3.1% in the 13 weeks to August 1, marking a steeper decline than the 2.5% drop in the first quarter. Regional performance varied, with North America leading the decline at 6.8%, followed by Europe at 2.7%. The U.K. and Asia Pacific bucked the trend, posting gains of 0.8% and 1.4%, respectively. Online sales grew 2.6% over the period.
Chief Executive Regis Schultz cited weaker consumer sentiment, a slowdown in high-heat footwear, and deferred back-to-school demand as key factors behind the softness. He also highlighted incremental cost-of-living pressures in a highly promotional market. Footwear sales remained weak due to consumer pressure and shifts in product cycles across major brand partners, while apparel and accessories performed well across all regions.
Store footfall was broadly lower year-over-year outside of key events, though conversion rates improved. Gross margins for the first half met expectations, supported by controlled pricing and partially offset by higher marketing costs. Morgan Stanley analysts expect consensus estimates to decline by mid-single digits following the update, reinforcing weak sentiment in the sporting goods sector.
