JD Sports reports robust performance in challenging market

LONDON: JD Sports Fashion Plc, a leading global retailer of sports, fashion, and outdoor brands, announced a pre-close trading update on Tuesday, covering the nine weeks ending Jan. 4, 2025.

Despite market headwinds, CEO Régis Schultz reported a 3.4% increase in organic revenue for the period. “Considering the current headwinds in the market, we performed well, delivering organic revenue growth and a strong Christmas,” Schultz said. He thanked colleagues for their hard work and commitment during this key part of the year.

JD Sports maintained its trading discipline by not participating in the more promotional market environment, resulting in gross margins ahead of last year. “While I am pleased overall with our performance, market headwinds were higher than we anticipated, and therefore our full-year profit forecast is slightly below our previous guidance,” Schultz added.

The company saw a 1.5% increase in like-for-like (LFL) revenue in December, despite a 1.5% decline across November and December combined. Footwear sales outperformed apparel, with stores performing better than online channels. Strong LFL revenue growth in Europe and Asia Pacific partially offset weaker trading in the UK and North America. Recent acquisitions Hibbett and Courir also performed well.

Year-to-date LFL revenue is flat, and the company expects full-year LFL revenue to remain at similar levels, with organic revenue growth projected at around 5%. Gross margins remain robust at approximately 48%, in line with last year.

JD Sports now expects full-year profit before tax and adjusting items to be between £915 million and £935 million. The company has managed its inventory position well and anticipates ending the year with a small net debt position on a pre-IFRS 16 basis.

The Group will provide a post-close update in March, covering both a Q4 trading update and guidance for FY26.