By James Davey
LONDON (Reuters) -Britain’s JD Sports Fashion reported a 13.5% fall in first-half profit on Wednesday due to weakness in its key U.S. market and stuck to its full-year guidance, though the retailer flagged ongoing caution over the trading backdrop.
The FTSE 100-listed sportswear retailer, which earns nearly 40% of its revenue in the United States through its JD Sports, Hibbett, DTLR, Shoe Palace and Finish Line stores, did, however, say it expected only a limited impact from U.S. President Donald Trump’s tariffs this financial year.
Shares in the group have lost 43% of their value over the last 12 months, reflecting a market driven by discounts and a drop-off in demand for Nike products, which make up about 45% of its sales.
The company forecast full-year profit before tax and adjusting items in line with current market expectations, which range from 853 million pounds to 914 million pounds ($1.15-$1.23 billion), with a consensus of 878 million pounds, down from the 923 million pounds it made in 2024/25.
It made 351 million pounds in the first half to August 2, with sales up 18% to 5.94 billion pounds and organic growth of 2.7% in what it called “a tough trading environment.”
First-half like-for-like sales, published last month, fell 2.5%, with North America down 3.8% and the UK down 3.3%. Still, it gained market share in North America and Europe.
“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,” he added.
($1 = 0.7405 pounds)
(Reporting by James Davey, Editing by Paul Sandle and Bernadette Baum)
