JD Sports confident for full year as sales jump

(Sharecast News) - Retailer JD Sports Fashion confirmed it was on track to meet full-year profits guidance on Wednesday, despite a "tough" trading environment. Sales at the fashion and sports specialist jumped 18% in the 26 weeks to 2 August, at £5.9bn, or by 20% at constant exchange rates.

Within that, organic sales in North America - JD Sports' biggest market - rose 3.1% at £2.3bn, and by 6% to £1.9bn in Europe.

In the UK, however, tough comparatives saw sales soften 1.7% to £1.5bn. The retailer benefited last year from strong demand during the Euro 2024 football tournament.

Group pre-tax profits fell to £351m from £406m, as the chain made controlled price investments, particularly online. It also makes the bulk of its profits in the second half.

Looking to the full year, JD Sports said it remained "cautious" on the trading environment, flagging consumer finances, a weaker jobs market and changes in the footwear product cycle.

However, the blue chip said the financial impact from US tariff exposure in the current year was likely to be limited.

As a result, it remained on track to meet forecasts for full-year pre-tax profits before adjusting items, despite the headwinds. Analysts are currently looking for annual profits of between £853m and £914m.

Regis Schultz, chief executive, said: "We delivered organic sales growth of 2.7% in the first half, in what remains a tough trading environment.

"This demonstrates the resilience of our business, underpinned by our agile multi-brand model, broad geographic reach and unmatched connection with customers."