JD Sports lowers profit forecast amid challenging Q2 trading

UK-based retail group JD Sports Fashion (JD Group) has revised its full-year profit guidance downward following a challenging second quarter. The group now anticipates profit before tax and adjusting items of between 700 million pounds and 800 million pounds (953 to 1,089 million dollars) for the fiscal year 2027, compared to the previously guided range of 750 million pounds to 850 million pounds.

JD Group chief executive officer Régis Schultz stated that trading in the second quarter remained tough due to macro headwinds and cost-of-living pressures facing core consumers. Schultz noted that the group continues to exercise strict cost and capital discipline across discretionary spend, store operating expenses, and inventory management.

Q2 LFL sales decline by 3.1 percent

For the second quarter ended August 1, 2026, group organic sales fell by 1.3 percent, while like-for-like (LFL) sales decreased by 3.1 percent. The performance was impacted by ongoing softness in footwear due to product cycle evolution across major brand partners and reduced consumer demand in a promotional market environment. Total sales for the 13-week period stood at 3.09 billion pounds.

For the first half of the fiscal year, total sales reached 5.90 billion pounds, reflecting an organic sales decline of 0.7 percent and a LFL drop of 2.8 percent. Despite the revenue pressure, group gross margin for the first half remained in line with company expectations.

Online sales across the group rose 2.6 percent in the second quarter, driven by the expansion of store-based fulfilment initiatives and strength in the apparel segment.

Regional performance shows divergence across key markets

Regional results varied significantly during the second quarter. In North America, which accounted for 35 percent of total sales, organic sales declined 4.5 percent and LFL sales decreased 6.8 percent. Performance in the region was affected by weaker core consumer sentiment, a slower period for high-heat footwear launches, and the deferral of back-to-school demand from July into August.

In the UK, LFL sales grew 0.8 percent, supported by strong demand for apparel, accessories, and football replica kits, as well as an improved performance in the outdoor division. Organic sales in the region fell slightly by 0.2 percent. Europe recorded an organic sales decline of 0.4 percent and a LFL decrease of 2.7 percent, underpinned by resilient trading in its sporting goods businesses in Iberia, Greece, and Cyprus.

The Asia Pacific region recorded strong growth, with organic sales rising 10.2 percent and LFL sales increasing 1.4 percent during the second quarter. Growth across the region was supported by robust footwear and apparel sales alongside online expansion.

Free cash flow guidance for the full year remains unchanged at 460 million pounds to 520 million pounds. Additionally, the retailer initiated the second 100 million pound tranche of its 200 million pound annual share buyback programme on August 3, 2026.