JD Sports posts first-half profit fall as tough US conditions take toll

JD Sports, which has been expanding internationally, posted pre-tax profit before adjusting items down 11.8% at constant currency to £351m. Performance was affected by weak showing in the important US market, but JD said earnings were in line with guidance.

The retailer’s group sales rose 20% to £5.94bn.

The retailer achieved “organic” sales growth of 2.7% in the half, when trading conditions were “tough”. Chief executive Regis Schultz maintained: “This demonstrates the resilience of our business, underpinned by our agile multi-brand model, broad geographic reach and unmatched connection with customers.”

He said: “In North America, where we gained market share in the period, the development of our operations is progressing well. We continue to build strong brand awareness of the JD fascia by building out our customer proposition and investing in new stores; and for our complementary fascias we are successfully progressing the integration of Hibbett, while DTLR and Shoe Palace took over the operations of City Gear in June.

“Our supply chain investments are poised to unlock significant efficiencies across our global network. Our new European distribution centre in Heerlen, the Netherlands, is set to launch automation for JD Europe store replenishment in the coming weeks, while our US west coast site in Morgan Hill is set to go live with JD and Finish Line by year-end – the next step of our plan to leverage our distribution centres on a multi-fascia basis.

“In an environment of strained consumer finances and evolving brand product cycles, operation and financial discipline remains a core focus for JD, and we are controlling our costs and cash well. While we remain cautious on the trading environment for the second half, we expect limited impact from US tariffs this financial year, and our full year profit before tax and adjusting items to be in line with current market expectations.”