JD Sports profits slip as shopper finances tighten; UK sales slide after store closures

JD Sports Fashion PLC reported a slide in profit for the first half as strained consumer finances weighed on demand, with like-for-like sales down globally and the UK hit by the closure of multiple stores. The group said like-for-like sales fell 2.5% globally to £5.94 billion over the 26 weeks to 2 August, with the UK experiencing a 3.8% decline. Nineteen stores were shut earlier in the period, a factor the retailer attributed to softer domestic trading. The performance came as the company remained cautious about the outlook for the second half amid ongoing pressure on consumer finances and a shift in the footwear product cycle.

UK store closures and higher operating costs also weighed on margins, with UK operating profits before adjusting items and lease interest falling 6.2% amid higher labour costs, property costs and investments in technology and cyber resilience. The group said the weaker domestic trade was partly the result of tough prior‑year comparisons following Euro 2024.

The company highlighted that its total organic sales at constant currencies edged up 2.7%, while like-for-like sales still fell 2.5%, a divergence credited to its expanding US footprint through acquisitions. The retailer’s operating profit before adjusting items slipped 8.2% to £369 million, in line with guidance. In its interim results, JD Sports said annual pre-tax profit was on track to come in line with market expectations, and it declared an interim dividend of 0.33p per share, while confirming that the second £100 million share buyback announced last month would begin soon.

Chief executive Régis Schultz described the trading backdrop as a “tough environment,” noting that the positive organic growth reflected the resilience of its multi-brand model, broad geographic reach and strong customer connection. He said North American market share and brand awareness had grown as the Hibbett integration progressed, and that investments in the supply chain were poised to unlock efficiencies across the global network. An automation programme for a new European distribution centre in the Netherlands will begin shortly, with a US site in Morgan Hill scheduled to go live by year-end. Schultz added that the company remained cautious on the second half given continued consumer pressure, elevated unemployment risk and the ongoing transition in the footwear product cycle.

The impact of Donald Trump’s proposed tariffs was described as limited by the group, which reaffirmed guidance that outcomes for the full year would be in line with market expectations. JD Sports shares traded down about 1% early in the session, reflecting a broader market wariness amid a challenging retail backdrop. The stock had already fallen more than 40% over the prior 12 months.

Analysts offered mixed views on the update. Garry White, chief investment commentator at Charles Stanley, warned that a tricky second half looms for JD Sports as margins compress and competition intensifies, though he acknowledged the strategic rationale of the Hibbett and Courir acquisitions. Victoria Scholar, head of investment at Interactive Investor, noted that sentiment around the stock was divided, with an even split of hold and buy recommendations as investors digested the results and guidance.

Investors and observers will be watching how the cost-saving initiatives and the North American push translate into margins and cash flow as the year progresses, particularly if consumer finances do not improve and inflation remains elevated. The company’s results underscore the ongoing challenge for value-driven fashion retailers in a constrained consumer environment, even as expansion into new regions provides some offset.