JD Sports has lowered its profit expectations for FY27 from £750-850 million to £700-800 million after a weak second quarter.
Sales in North America were hit the hardest, with organic sales falling 4.5% and like for like 6.8%. JD Sports attributed this to “weaker core consumer sentiment, a slower quarter for high-heat footwear product, and deferred ‘back-to-school’ demand from July into the first half of August.”
The UK and Europe saw improved sales performance from Q1, but organic and like-for-like sales were still down across the board.
Overall, organic sales for the group in Q2 were down 1.3% and like-for-like 3.1%. Over H1 2027, organic sales were down 0.7% and like-for-like 2.8%.
Cost-of-living pressures continue to bear down
Régis Schultz, Ceo of JD Sports Fashion plc, described Q2 as “tough”, citing ongoing cost-of-living pressures on the core consumer base and “consumer and footwear product cycle headwinds”.He said the company remains committed to its strategy of an increasingly diverse product and omnichannel offering, pointing to momentum in performance-based running styles, and 2.6% growth in online sales.
“Our store estate is also becoming more productive, with Group space growth contributing +2.1% to sales in H1 despite a lower store count,” he added.
“A pragmatic view”
Schultz described the decision to lower the FY27 guidance as “a pragmatic view of external market conditions.”
“We remain confident in our long-term strategy and my thanks go to our colleagues worldwide for their continued hard work and focus,” he added.
Analysts have reiterated JD’s confidence in its long-term strategy. Investment bank Peel Hunt said: “Q2 was impacted by a cautious consumer, especially in the US, and low product heat. We believe it unlikely that either will change short term. Despite sound strategy (there is little JD can do about the macro and the product pipeline), our FY forecasts fall today (c.9%), as we take a conservative view in the immediate macro and product cycle in H2.”
It added: “JD continues to adopt the correct tactics, and it must be remembered that it is the partner of choice of brands and customers. Long term that should become apparent in the share price, and the valuation remains low: all the shares need is either a macro or a product fillip.”
Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research. Click here to subscribe to the FREE newsletter sent straight to your inbox. Why not follow us on LinkedIn to receive the latest updates on our research and analysis?
