JD Sports Fashion reported a double-digit profit decline for the first half of its financial year, hurt by softer demand in the United States, which is its largest market,
The FTSE 100 retailer said pre-tax profit before exceptional items fell 13.5% to $471.8 million for the 26 weeks to August 2.
Despite the decline, sales rose 18% to $7.98 billion with organic growth of 2.7%.
Like-for-like sales, released earlier in September, slipped 2.5% overall, including a 3.8% drop in North America and a 3.3% fall in the UK.
Shares in the company have slumped 43% over the past year amid heavy discounting and weaker demand for Nike products, which account for nearly half of JD’s revenue.
Around 40% of sales come from its US chains, including Hibbett, DTLR, Shoe Palace and Finish Line.
For the full year, JD reaffirmed its forecast for adjusted pre-tax profit to land within the market’s expected range of $1.1 billion to $1.2 billion, with consensus at $1.1 billion
That would be below the $1.2 billion it reported in fiscal 2024/25. The company also said recently announced tariffs from the Trump administration would have only a “limited impact” this year.
“In an environment of strained consumer finances and evolving brand product cycles, operating and financial discipline remains a core focus for JD, and we are controlling our costs and cash well,” CEO Regis Schultz said.
“We remain cautious on the trading environment for the second half.”
JD noted that while conditions remain difficult, it continues to gain share in both North America and Europe.
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