REG - JD Sports Fashion - INTERIM RESULTS 2025/26
24/09/2025 07:00
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RNS Number : 5267A JD Sports Fashion PLC 24 September 2025
INTERIM RESULTS 2025/26
Continued focus on operating & financial discipline
PERFORMANCE SUMMARY:
£m 26 weeks to 26 weeks to % change (reported) % change (constant*)
2 Aug 2025 3 Aug 2024
Sales 5,940 5,032 +18.0% +20.0%
Gross margin %* 48.0% 48.6% (60) bps (60) bps
Operating profit*(±) 369 402 (8.2)% (6.3)%
Operating margin %*(±) 6.2% 8.0% (180) bps (170) bps
Profit before tax and adjusting items* 351 406 (13.5)% (11.8)%
Adjusted basic earnings per share* (p) 4.60 5.15 (10.7)% (8.5)%
Operating cashflow net of lease repayments* 546 520 +5.0%
Statutory measures
Operating profit 389 292 +33.2%
Net finance expense (88) (45) +95.6%
Profit before tax 138 126 +9.5%
Basic earnings per share (p) 0.80 0.42 +90.5%
Dividend per share (p) 0.33 0.33 -
* See page 3 for further details on Alternative Performance Measures; (±)
Before adjusting items, after interest on lease liabilities.
RÉGIS SCHULTZ, CEO OF JD SPORTS FASHION PLC:
"We delivered organic sales growth of +2.7% in H1, 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.
"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, operating and financial discipline remains a core focus for JD, and we
are controlling our costs and cash well. Whilst 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."
H126 HEADLINES:
• Market share gains((1)) in key growth markets of North America and
Europe, against tough consumer backdrop
• Strong progress against strategic objectives across omnichannel
customer proposition, store footprint, supply chain and North America
operations. Costs and cash being well controlled
• Total sales +20.0% (at constant FX rates) driven by acquisitions of
Hibbett and Courir; organic* sales +2.7% (at constant FX rates) and
like-for-like* (LFL) sales -2.5%
• Stronger LFL sales trends in apparel and online in North America;
resilient LFL sales in Europe, and UK organic sales((2)) affected by tough Q2
comparatives due to Euro 2024 football tournament
• Good underlying performance in apparel globally; footwear softer given
ongoing shift in product cycle
• Gross margin of 48.0%, 60bps lower YoY (40bps lower YoY excluding
Hibbett and Courir). Maintaining trading disciplines with controlled price
investments, particularly in online
• Profit before tax and adjusting items (PBTAI) of £351m, in line with
guidance given on 27 August
• Interim dividend of 0.33p declared; second £100m share buyback
programme to commence soon
• Expect FY26 PBTAI to be in line with current market
expectations((3,4)), with limited impact expected from US tariffs this
financial year
STRATEGY HIGHLIGHTS
JD Brand First
• Opened 42 net new JD stores globally, including flagships in Las
Vegas, Vancouver, Melbourne, and Manchester's Trafford Centre (JD's largest
store globally)
• JD fascia gained market share in the North America and Europe in H1.
Significantly boosted brand awareness in North America YoY
Complementary Concepts
• Integration of Hibbett and Courir on track, strengthening our presence
in North America and Europe
• Complementary North American fascia segments ('Premium', 'Reach' and
'Focus') driving sharper customer targeting and operational synergies
Beyond Physical Retail
• Continued global supply chain optimisation with key distribution
centres going live or ramping up in the US, Europe and Australia
• JD's 'STATUS' loyalty programme approaching 9m active members,
supporting deeper and more personalised customer engagement
People, Partners & Communities
• Rolled out 'JD Now' colleague communications platform across six
countries, with a strong uptake
• Achieved CDP leader status for climate action ('A' rating) for
supplier engagement assessment, and retained 'Zero Waste to Landfill'
accreditation at major UK and European sites
The remainder of this release consists of 3 main sections:
Contents Page(s)
Chief Executive Officer's review 5 to 10
Review of H126 performance 5
Strong and focused execution against our strategic objectives 7
Returns to shareholders 9
US tariffs 10
Outlook and FY26 guidance 10
Technical guidance for FY26 & medium-term objectives and capital 11
allocation priorities
Chief Financial Officer's review 12 to 19
Financial review 12
Condensed consolidated financial statements (unaudited) 20
Embargoed until 7am British Summer Time, 24 September 2025
JD Sports Fashion plc Tel: 0161 767 1000
Régis Schultz, Chief Executive Officer
Dominic Platt, Chief Financial Officer
Maj Nazir, Director of Investor Relations
Advisors
Bank of America - Antonia Rowan Tel: 0207 628 1000
Peel Hunt LLP - Dan Webster Tel: 0207 418 8869
FGS Global - Rollo Head, James Thompson Tel: 0207 251 3801
Footnotes
(1) Source: Circana, LLC.
(2) We see organic sales as a better sales KPI than like-for-like (LFL)
sales in the UK. JD's store strategy in the UK is to optimise its footprint
and sales densities, the benefit of which is not captured in LFL sales. For
example, our new flagship store at the Trafford Centre in Manchester is
performing strongly (not captured in LFL sales), but is resulting in - as
planned for and as per our experience - an impact on the LFL sales of other JD
stores in the vicinity.
(3) According to Company-compiled data as of 15 September 2025, the
current consensus of 16 sell-side analyst expectations for FY26 PBTAI is
£878m, with a range of £853m to £914m.
(4) Assuming FX rates of GBP-USD of 1.33 and GBP-EUR of 1.16. Average
exchange rates in H126 were GBP-USD of 1.31 and GBP-EUR of 1.16 (H125: GBP-USD
of 1.27 and GBP-EUR of 1.17).
Alternative Performance Measures
Throughout this release, '*' indicates the first instance of use of
Alternative Performance Measures, which management believe are useful and
necessary to assist the understanding of the Group's results. Please refer to
pages 41 to 46 for further information, including reconciliations to statutory
measures where required.
Forward-looking statements
This announcement contains certain forward-looking statements relating to
expected or anticipated results, performance or events. Such statements are
subject to normal risks associated with the uncertainties in our business,
supply chain and consumer demand along with risks associated with
macro-economic, political and social factors in the markets in which we
operate. Whilst we believe that the expectations reflected herein are
reasonable based on the information we have as at the date of this
announcement, actual outcomes may vary significantly owing to factors outside
the control of the Group, such as cost of materials or demand for our
products, or within our control such as our investment decisions, allocation
of resources or changes to our plans or strategy. Except as required by
applicable law or regulation, the Group disclaims any obligation or
undertaking to revise forward-looking statements made in this or other
announcements to reflect changes in our expectations or circumstances. As
such, undue reliance should not be placed on the forward-looking statements
contained within this announcement.
Results presentation and Q&A
Régis Schultz (Group CEO) and Dominic Platt (Group CFO) will host an
in-person results presentation and Q&A for pre‑registered analysts and
investors today at 08.30 (UK time). The presentation will be held at Peel
Hunt, 100 Liverpool Street, London, EC2M 2AT.
A simultaneous live video webcast of the presentation and Q&A will also be
available, using the following link:
https://app.webinar.net/4k98pDBPDeR
Post-event, a replay will be available on demand via the Investors section of
our website at www.jdplc.com/investor-relations.
Financial calendar
The next scheduled event is our Q3 trading statement 2025/26 on 20 November
2025.
About JD Sports Fashion plc
Founded in 1981, the JD Group ('JD') is a leading global omnichannel retailer
of Sports Fashion brands. JD provides customers with the latest sports fashion
through working with established and new brands to deliver products that our
customers most want, across both footwear and apparel. The vision of JD is to
inspire the emerging generation of consumers through a connection to the
universal culture of sport, music and fashion. JD focuses on four strategic
pillars: JD Brand First, first priority, first in the world; leveraging
Complementary Concepts to support JD Group global expansion; moving Beyond
Physical Retail by building the right infrastructure and creating a lifestyle
ecosystem of relevant products and services; and doing the best for its
People, Partners & Communities. JD is a constituent of the FTSE 100 index,
with 4,872 stores across 36 countries as of 2 August 2025.
CHIEF EXECUTIVE OFFICER'S REVIEW
JD Sports is reinforcing its position as a leading international sports
fashion powerhouse, in an attractive and growing market which benefits from
ongoing casualisation and active lifestyle trends. In a tough trading
environment in the short term - in terms of strained consumer finances
together with evolving brand product cycles in athleisure - we have remained
calm and focused on consistent execution against our strategic priorities, and
strict operational and financial discipline. This is evidenced by market share
gains in our key growth markets of North America and Europe in the period.
Above all else, we remain obsessed with delighting our customers by evolving
our multi-brand product assortment - including the latest and exclusive
premium sports fashion, expanding and enhancing our store footprint,
strengthening our omnichannel capabilities, and improving the efficiency of
our supply chain to ensure strong product availability and fast fulfilment.
While we recognise that consumer behaviours are evolving in the face of
broader uncertainty across the world, by staying close to our customers and
brand partners, we believe we can continue to lead with the right products, at
the right time, in the right place. Our strong and agile multi-brand business
model, underpinned by disciplined execution and a clear strategic focus,
positions us well to navigate these challenges.
Review of H126 performance
Total sales below (in £m) include the results of Hibbett and Courier. JD
Group completed the acquisition of Hibbett on 25 July 2024, and Courir on 27
November 2024. Organic sales growth excludes acquisitions and disposals, and
is calculated at constant FX rates.
Sales by region
H1: 26 weeks to 2 August
Total sales (£m) Like-for-like Organic
North America 2,318 (3.8)% +3.1%
Europe 1,921 (0.3)% +6.0%
UK 1,464 (3.3)% (1.7)%
Asia Pacific 237 (2.4)% +6.0%
Group 5,940 (2.5)% +2.7%
Sales by segment
H1: 26 weeks to 2 August
Total sales (£m) Like-for-like Organic
JD 3,674 (3.0)% +3.7%
Complementary Concepts 1,567 (2.4)% +1.1%
Sporting Goods & Outdoor 699 -% (0.8)%
Group 5,940 (2.5)% +2.7%
Turning to our performance in the 26 weeks to 2 August 2025, we achieved
sales of £5,940m, +18.0% on the comparative period, or +20.0% at constant FX
rates. Excluding the two businesses acquired in FY25 (Hibbett and Courir),
organic sales growth was +2.7% at constant FX rates, which includes a +5.2%pts
benefit to sales from net new stores opened across the Group. We believe +2.7%
is faster than the growth of our addressable markets, driven by market share
gains in North America and Europe. Group LFL sales were -2.5%.
Excluding Hibbett and Courir, the gross margin % for the Group in H1 was 40bps
lower YoY. This was largely driven by controlled price investments in the
online offer to boost competitivity and increase engagement with online
customers. Including acquisitions, the overall Group gross margin % in H1 was
60bps lower YoY at 48.0% (H125: 48.6%).
We are a highly cash generative business, with £546m of operating cash flow
(after lease repayments) in H1 +5.0% YoY. Given the seasonality of our
business, it is normal to see working capital outflows in the middle of the
financial year, before normalising around the year-end. At the end of H1, we
had net debt (before lease liabilities) on our balance sheet of £125m. We
expect to move to a net cash position (before lease liabilities) by the
year-end.
Regional commentary
North America is our largest market by sales, generating 39% of JD Group sales
in H1, with Europe at 32%, the UK at 25% and Asia Pacific at 4%.
LFL sales in H1 were resilient in Europe, supported by our sporting goods
fascias in Iberia, Greece and Cyprus, and it was encouraging to see improved
LFL trends quarter on quarter in both North America and Asia Pacific. In H1,
we grew our market share in North America and Europe (source: Circana). In the
UK, we see organic sales as a better sales KPI than LFL, given the ongoing
evolution of our store footprint with 'bigger and better' stores. See footnote
2 on page 2 for further details. UK organic sales were -1.7% in H1, affected
by tough prior year comparatives due to the Euro 2024 football tournament.
Store footprint
We ended H1 with 4,872 stores worldwide, compared with 4,850 at the start of
the financial year. Across all fascias, 156 stores were opened and 131 stores
were closed, which includes 32 store relocations. Three stores were disposed
(within our Outdoor business) as we continued to optimise our store
portfolio.
Store numbers Stores as of Openings Closures Transfers Disposals Stores as of
(excludes JD Gyms and franchise stores) 1 Feb 2025 2 Aug 2025
JD North America 339 31 (1) 22 0 391
Finish Line 257 0 (15) (22) 0 220
Macy's 256 0 0 0 0 256
JD Europe 638 44 (10) 1 0 673
JD United Kingdom 434 10 (23) 0 0 421
JD Asia Pacific 102 5 0 0 0 107
JD 2,026 90 (49) 1 0 2,068
DTLR 251 9 (9) 169 0 420
Shoe Palace 202 12 (1) 29 0 242
Hibbett 999 22 (21) 0 0 1,000
City Gear 200 0 (2) (198) 0 0
Courir 300 8 (1) 0 0 307
Eastern Europe 269 2 (35) (1) 0 235
Complementary Athleisure 2,221 53 (69) (1) 0 2,204
Sporting Goods 372 10 (4) 0 0 378
Outdoor 231 3 (9) 0 (3) 222
Sporting Goods & Outdoor 603 13 (13) 0 (3) 600
Group 4,850 156 (131) 0 (3) 4,872
Channel commentary
Delivering a world-class omnichannel experience for our customer remains one
of our top priorities:
• Sales from our 4,872 stores worldwide were 80% of Group sales in H1,
at £4.7bn (+22.6% at constant FX rates). Organic store sales were +3.6%, with
LFL -3.0%.
• Online sales, which include click-and-collect orders and home delivery
orders shipped from store, were 19% of Group sales in H1, at £1.1m (+11.1% at
constant FX rates). Organic online sales were -1.6%.
• North America saw a much-improved online sales performance in H1,
supported by a better online range, focused marketing efforts and, to a lesser
extent, the successful roll-out of a new e-commerce platform for the JD and
Finish Line fascias. In the UK, where a higher proportion of our sales are
from online relative to our other regions, online sales were lower YoY in H1.
This was affected by the prevailing trading environment as well as the tough
prior year comparatives noted above. In Europe, we made controlled price
investments in our online offer, reflected in higher online traffic and
conversion as the period progressed. This was supported by the ongoing
roll-out of our 'ship‑from-store' fulfilment model.
• Other sales mainly relate to JD Gym memberships in the UK, and were 1%
of Group sales in H1.
Category commentary
Our business model is underpinned by our strong, agile and multi-brand
assortment of products, delivering a 'head-to-toe' shopping experience for our
customers. Our sales mix is as follows:
• 62% footwear (H125: 60%). We are seeing a fundamental shift in the
global footwear product cycle, given the transition between newer franchises
and some significant 'end of cycle' product lines. Notwithstanding this, we
saw strong growth across brands less affected by transition, which reflects
the benefit of our agile, multi-brand model. The early signals for the new
franchises (in terms of both product launches and the pipeline) are
encouraging, and although small today, present an exciting longer-term
opportunity for the Group.
• 28% apparel (H125: 30%). The evolution of the apparel product cycle is
very different compared with footwear. Our apparel proposition is in excellent
shape, and we believe there is significant scope to leverage this for growth,
particularly in North America where our apparel mix is relatively low compared
to other regions.
• 6% accessories (H125: 6%)
• 4% other (H125: 4%), which includes outdoor living equipment and gym
memberships.
In H1 we saw good underlying apparel sales, supported by a strong product
offer, albeit we faced tough comparatives from replica shirt sales in the UK
and Europe due to the Euro 2024 football tournament.
Footwear sales were generally impacted in all regions by the product cycle
dynamics noted above. We saw an encouraging performance in newer footwear
lines (especially performance-based lines). Footwear sales as a proportion of
overall Group sales increased from 60% to 62% YoY, due to the category mix of
our recently acquired businesses, Hibbett and Courir. On an organic basis
(excluding Hibbett and Courir), footwear sales were slightly lower (c.-1% to
£2.9bn) and apparel grew +c.6% to £1.6bn.
Strong and focused execution against our strategic objectives
In early 2023, we set out our strategic plan under four pillars (JD First,
Complementary Concepts, Beyond Physical Retail and People, Partners &
Communities). JD Brand First is our commitment to putting JD at the forefront
of premium sports fashion, ensuring that we are the first choice for
consumers around the globe. It is the number one priority for the Group.
Complementary Concepts is about broadening our reach across customers,
geographies and categories, and contributing to our growing scale. Beyond
Physical Retail is our investment in infrastructure and technology and digital
to support our long-term growth ambitions. And People, Partners &
Communities, which reflects our commitment to our people, partners and the
communities in which we operate and ensuring we have a fit for purpose
governance and control environment.
The Group is focused on driving like-for-like sales and market share growth.
We do this through optimising our footwear, apparel and other product ranges
to offer our customers the latest, often exclusive, premium sports fashion
products - leveraging our unique brand merchandising, marketing and customer
insights expertise. We are also building strong omnichannel capabilities,
supported where appropriate by loyalty programmes. We leverage the renowned
'JD theatre' within our stores to expand our reach and bring our proposition
to life, in an environment that elevates our brand partners' stories and
delights our customers. As of 2 August, we operated 4,872 stores across 36
countries, with a further 68 franchise stores in 15 countries, supported by
19% of our Group sales from online channels.
JD Brand First
The JD brand has a strong position globally, with its brand awareness
continuing to grow in key growth markets (such as North America). We have
deep, long-term partnerships with the leading brands in sports fashion,
capitalising on over 40 years of industry experience. And we have a
consistent, global framework for the JD fascia - which is adapted according to
local customer needs, leveraging our own brands as well as partnerships with
new and emerging brands.
In H1 we opened 42 net new JD stores, taking the total to 2,068 as we
continued to grow JD's international store footprint. We follow a disciplined
approach to capital investment for new stores and, outside of strategic
investments in flagships, each new store targets a payback on investment of
less than three years.
Highlights in H126 include:
• In North America, JD saw 30 net store openings including flagship
stores in Las Vegas and Vancouver, together with 22 further Finish Line
conversions and 15 closures as part of the successful ongoing Finish Line to
JD conversion programme. As a reminder, the Finish Line at Macy's stores are
not part of this conversion programme. In H1, JD and Finish Line launched
their new e-commerce platform, enhancing the capabilities of their websites
and apps. Alongside market share gains in H1, JD saw a significant YoY
increase in its national aided brand awareness in the US. Building on this
momentum, JD is increasing its marketing initiatives in North America to
support its growth plans within the region.
• In Europe, JD opened 35 net new stores, with a focus on Spain, Italy,
France and Poland.
• In the UK, with a leading market position and strong coverage across
the country, JD's focus is primarily on improving locations and/or optimising
store sizes in existing cities and towns to drive higher productivity. As a
result, we saw a net reduction of 13 stores, albeit overall selling space
increased. In June we celebrated the opening of a new destination store at the
Trafford Centre in Manchester, JD's largest store globally, with very strong
early results.
• In Asia Pacific, we opened 5 new JD stores, including a flagship store
in Melbourne, extending our reach in these regions.
• To further grow the JD brand in other strategic markets, we have made
great strides in developing our franchise model. The advantages of this model
include collaborating with our experienced partners to leverage their local
knowledge and relationships, while also benefiting from low capital
expenditure requirements. In addition to the three existing franchising
agreements covering the Middle East, South Africa and Indonesia, we were
pleased to finalise an agreement in March for franchise operations in the
Philippines. We remain committed to exploring further opportunities.
Complementary Concepts
Our complementary athleisure concepts extend our reach within the global
sportswear market, driving deeper customer penetration. These include Hibbett,
DTLR, Shoe Palace and City Gear in North America, together with Courir and MIG
in Europe. In addition to these complementary concepts, we also operate
sporting goods businesses through ISRG (Iberia) and Cosmos (Greece and
Cyprus), as well as outdoors businesses in the UK (including Go Outdoors,
Blacks and Millets).
Our current focus is: (i) further developing our successful city specialist
and community fascias within North America, and (ii) developing our
complementary sports fashion and sporting goods businesses in Europe, together
with our outdoors business in the UK. We continue to make good progress across
all these areas.
We ended the first half with 2,204 stores within our Complementary Concepts
portfolio, down by a net of 17 from the start of the period, largely
reflecting a reduction of stores in Eastern Europe. In addition, our Sporting
Goods and Outdoors businesses saw a net reduction of three stores to 600.
Within North America, we operate four core complementary fascias: Hibbett,
DTLR, Shoe Palace and City Gear. Together with our JD and Finish Line
fascias, we have a comprehensive coverage of geography and customer
demographic. To explain our fascias respective roles in the North American
market, we have segmented them into 'Premium', 'Reach', and 'Focus':
• 'Premium' is aligned to our 'JD Brand First' strategic pillar. The
predominant US JD customer is the same young customer as everywhere else in
the world. Our JD stores operate mainly in shopping malls and premium
locations.
• 'Reach' is a convenient community format expanding our reach into
under-served markets and rural areas. It primarily consists of Hibbett, but we
also include our successful Finish Line corners in Macy's which extend our
reach to female customers in North America. The integration of Hibbett is
progressing well, and we are on track to deliver annualised cost synergies of
US$25m, with half-to-two thirds of this expected this year. Hibbett's
performance since acquisition has been resilient, against a tough trading
backdrop. The business has a category mix currently skewed towards footwear
(relative to the Group average), with strong and long-standing relationships
with major brand partners in North America who value Hibbett's customer appeal
and extensive reach via 1,000 stores. In Q2, the business recorded a positive
LFL sales performance (versus its own numbers - we acquired the business in
late Q2 last year).
• 'Focus' is our city specialists in urban areas, including our DTLR,
Shoe Palace and City Gear fascias. They are mostly street mall venues, with
some presence in covered malls. They are fully complementary on a geographical
basis. As planned, in June we transferred the operations of 198 City Gear
stores (acquired as part of the Hibbett acquisition) to DTLR and Shoe Palace.
Early results following the transfer have been promising.
In Europe, the integration of Courir is proceeding according to plan. The
business operates 307 stores across six European countries including its home
market in France, as well as 33 franchise stores across nine further
countries. Given the demographics of its customer base, the business provides
us with unique sports fashion insights into female trends and behaviours in
Europe. Courir's sales performance since acquisition has been steady, albeit
affected in H1 by strong comparatives in athletic footwear for women.
Beyond Physical Retail
We aim to offer our customers the right products, at the right time, in the
right place for them. To do this, we have ongoing programmes to support our
'Beyond Physical Retail' strategic pillar. As set out in our Strategic Update
in April 2025, our current focus is on five key priorities: re‑platforming
our websites, further strengthening our cyber security (effectively an
'evergreen' project), further development of our omnichannel proposition,
developing our loyalty programme, and improving the efficiency of our global
supply chain.
On digital, we are making good progress on our investment to re-platform our
websites. JD and Finish Line in North America went live with their new
e-commerce platform in H1, with the UK and European markets to follow.
Last year we rolled out our successful US loyalty programme, JD STATUS, into
the UK, Ireland, France and Eastern Europe, and we are approaching 9m active
accounts in these markets with over £1bn of sales from members in H1. This
serves as the foundation for developing more targeted and personalised
relationships with our customers. In H1 we ran tests of personalised offers
during campaign periods, resulting in significant incremental sales.
During the period, we also made progress across many of our global supply
chain optimisation projects. To further the benefits, we have embarked on a
two-year journey to leverage our distribution centres on a multi-fascia basis.
Highlights in the period include:
• Our Alabaster distribution centre in Alabama (acquired as part of the
Hibbett transaction) is now operating with both Hibbett and DTLR, following
the transfer of City Gear operations to the latter.
• Our automated Morgan Hill distribution centre in California went live
in May 2025 and is performing well, achieving all its operational milestones.
Alongside Shoe Palace, we are planning for JD and Finish Line to go live
within Morgan Hill by the end of this financial year, unlocking significant
improvements in speed for store replenishment and online fulfilment.
• Our new Heerlen distribution centre in the Netherlands continues to
ramp up, and is on track on launch automation in the coming weeks (for store
replenishment, with online to follow in H1 next year). To minimise the risk
of disruption during our peak trading period, we will maintain our site in
Belgium in the short term.
• We have smoothly transitioned operations and started to realise
significant efficiencies following the opening of our fully automated
distribution centre in Leppington, Australia, at the end of last year.
As a reminder, we expect to see £20m+ of cost benefits related to technology
and supply chain double-running costs across FY27 and FY28.
People, Partners & Communities
We recognise that our scale enables us to make positive and lasting changes.
We want to provide our colleagues with the best opportunities to develop their
individual careers, to be the best partner for the brands, and to create a
lasting impact in the communities where we operate. Improving ESG performance
is an integral part of our Group strategy.
Highlights in the period include:
• We're delighted that our ground-breaking new global communications
platform, 'JD Now', is making a significant impact on colleague engagement
across the Group. The platform, which is app and browser-based, has so far
launched in the UK, France, Italy, Spain, Portugal, Belgium, Netherlands,
Austria and the Nordics, enabling our youthful workforce to collaborate, share
best practices and celebrate successes. The uptake is strong in the countries
where JD Now has rolled out (for example, over 90% in the UK), and there have
been nearly 4m chats on the platform since its launch in February. We have
recently started a phased roll-out of the platform in North America.
• Earlier this year we also commenced the successful roll-out of our new
global Human Resources Information System, ensuring a more seamless HR
experience for our people. The new platform also integrates a significant
library of online learning modules for our people, to encourage and support
their development.
• We are pleased to confirm that we will be launching our annual global
people survey in October, following on from the strong engagement and outcomes
seen in last year's survey.
• We place a strong emphasis on nurturing long-term relationships with
the leading brands, while also forging partnerships with new and emerging
brands. The Group's close relationship and in-depth understanding of our
customers enable us to consistently be the first to discover and capitalise on
trends. We continue to leverage this strength to test emerging brands and new
product franchises at a local level, prior to broader scaling up, with strong
results being seen so far this year.
• We are continuing our work on making a positive community impact.
During the period, via a colleague-led process, the JD Foundation nominated
72 local charities to support, with approximately £175k of grants awarded.
Reflecting our commitment to empower youth and drive social mobility through
the JD Foundation, in February we hosted nearly 4,500 students from 48 schools
in Manchester for 'JD UP', our immersive careers experience that gives young
people insight into the different roles that make up a global retailer.
Following on from JD UP's resounding success in both Manchester and London,
similar events are being planned in Spain and the US.
• Reflecting our commitment to meaningful climate action, we have
achieved 'A List' status with the Carbon Disclosure Project (CDP). This
recognition places us among a select group of companies leading in
environmental transparency and performance. Further to this, during the period
we achieved CDP leader status with an 'A' rating for our Supplier Engagement
Assessment, which evaluates corporate supply chain engagement on climate
issues, playing a key role in our decarbonisation transition.
• In July, we retained our 'Zero Waste to Landfill' accreditation at our
largest UK and European DC and office locations. This demonstrates our
commitment to environmental responsibility with improved recycling and waste
reduction.
Returns to shareholders
• Dividends: The Board has declared an interim dividend of 0.33 pence
per share, consistent with the prior year. In line with our dividend policy,
this represents approximately one third of the final dividend of 1.00 pence
per share paid for FY25.
◦ The interim dividend will be paid on 28 November 2025 to shareholders on
the register at the close of business on 31 October 2025. JD's shares will go
ex-dividend on 30 October 2025.
• Share buybacks: Reflecting our strong free cash flow generation and in
accordance with our medium-term capital allocation priorities (outlined on
page 11), the Board has determined that surplus capital is available for
return to shareholders. In addition to the ordinary dividend and the recently
completed £100m first share buyback programme, we announced a further £100m
share buyback programme on 27 August 2025. This decision reflects the Board's
view that, at current share price levels, share buybacks represents a
compelling return on equity.
◦ The new £100m programme will commence following today's publication of
our interim results, as previously announced.
US tariffs
US tariffs have the potential to affect our business across three key areas:
directly through our own brand and licensed products, as well as goods not for
resale (such as store fixtures and fittings); and indirectly via our brand
partners and broader macroeconomic impacts on consumer sentiment.
The direct exposure represents less than 10% of our sales in the US, and we
have already taken effective steps to diversify sourcing. As a result, we do
not consider the direct impact of tariffs on JD to be material.
On the indirect/brand side, we have spent several months closely monitoring
the evolving tariff landscape and maintaining regular dialogue with our brand
partners. In general, a significant proportion of their sourcing is
concentrated in Southeast Asia, and we are seeing our partners take proactive
steps across the supply chain to mitigate cost pressures and maintain
competitive pricing. Where retail price increases have occurred, they have
typically been targeted rather than applied uniformly.
Overall, for JD Group, we anticipate the financial impact from US tariff
exposure in the current financial year to be limited, supported in part by
inventory purchased prior to the implementation of tariffs. Looking further
ahead, uncertainty remains over broader tariff impacts as well as US consumer
sentiment.
Outlook and FY26 guidance
We remain cautious on the trading environment for the second half of the year,
reflecting continued pressure on consumer finances, elevated unemployment
risk, and the ongoing transition in the footwear product cycle. Despite these
headwinds, we expect our full-year profit before tax and adjusting items (FY26
PBTAI) to be in line with current market expectations((1,2)).
We continue to monitor the potential impact of US tariffs. However, based on
current assessments, we anticipate the financial impact from US tariff
exposure in the current financial year to be limited.
For further technical guidance for FY26, please refer to page 11.
Régis Schultz
Chief Executive Officer
24 September 2025
Footnotes
(1) According to Company-compiled data as of 15 September 2025, the
current consensus of 16 sell-side analyst expectations for FY26 PBTAI is
£878m, with a range of £853m to £914m.
(2) Assuming FX rates of GBP-USD of 1.33 and GBP-EUR of 1.16.
TECHNICAL GUIDANCE FOR FY26 & MEDIUM-TERM OBJECTIVES AND CAPITAL
ALLOCATION PRIORITIES
Please read the cautionary statement regarding forward-looking statements set
out on page 3 of this document.
FY26 guidance
• Anticipate LFL sales will be below FY25
• Acquisitions made during FY25 to add c.10% to total sales in FY26
◦ A full year of Hibbett and Courir, adding c.£1bn of incremental sales
vs FY25 at a c.6.5% margin((1))
• New space impact (net) on total sales of c.4%
◦ We anticipate c.75 to 100 net new stores in FY26
• Additional opex in FY26 of £50m+, outside of normal inflationary
increases, including: (i) UK labour costs, and (ii) a higher proportion of
technology investments falling into opex as opposed to capex
• Partially offsetting these increases will be:
◦ Cost savings and efficiencies across our key markets in FY26 of c.£30m
◦ Integration synergies in the US following the Hibbett acquisition -
half-to-two thirds of c.US$25m annualised savings expected in FY26, weighted
to H2
• We expect to be in line with current market expectations((2,3)) for
FY26 profit before tax and adjusting items (PBTAI), with limited impact
expected from US tariffs this financial year
• Capex of c.£450m to £500m
• Share buybacks of £200m (£100m completed, and new £100m programme
announced on 27 August to commence soon)
FX translational impact
• A one US cent move impacts FY PBTAI by c.£3m and a one Euro cent move
impacts PBTAI by c.£2m
Medium-term objectives
• Grow organic sales ahead of the market: driven by both LFL and the
contribution from new space growth, with the latter settling at around 3% in
the medium term
• Grow profit ahead of sales: supported by operating leverage and
efficiencies over the medium term (supply chain, acquisition synergies, and
opex efficiencies & productivity gains)
◦ Across FY27 and FY28, we expect to see £20m+ of cost benefits related
to technology and supply chain double‑running costs
• Strong cash generation: driven by profit growth and more focused store
investments and lower supply chain costs, with capex trending down to 3% to
3.5% of sales
Medium-term capital allocation priorities
• Organic investment: organic investment to fund capex and working
capital. As noted above, we see capex trending down to 3% to 3.5% of sales
over the medium term
• Commitments: maintain leverage headroom for the Genesis
non-controlling interest buyout in 2029 and 2030
• Dividend: pay a progressive ordinary dividend
• Increased investment and/or acquisitions: further organic investment
and/or M&A opportunities which enhance ROCE
• Incremental shareholder returns: return surplus cash
Footnotes
(1) Operating margin before adjusting items and after interest on lease
liabilities.
(2) According to Company-compiled data as of 15 September 2025, the
current consensus of 16 sell-side analyst expectations for FY26 PBTAI
is £878m, with a range of £853m to £914m.
(3) Assuming FX rates of GBP-USD of 1.33 and GBP-EUR of 1.16.
CHIEF FINANCIAL OFFICER'S STATEMENT
Financial Performance
£m H126 H125 Change Constant currency change
26 weeks to 2 August 2025 26 weeks to 3 August 2024
(Restated)(1)
Revenue 5,940 5,032 18% 20%
Gross profit before adjusting items* 2,853 2,449 16%
Gross margin before adjusting items* 48.0% 48.6% (60) bps
Operating costs before adjusting items* (2,414) (1,998) 21%
Interest on lease liabilities (70) (49) 43%
Operating profit before adjusting items after interest on lease liabilities* 369 402 (8.2)% (6.3)%
Operating margin before adjusting items after interest on lease liabilities* 6.2% 8.0% (180) bps
Net finance (income) / expense before adjusting items excluding interest on (18) 4
lease liabilities*
Profit before tax and adjusting items * 351 406 (14)% (12)%
Adjusting items * (213) (280) (24)%
Profit before tax 138 126 9.5%
(1) Please refer to Note 14 for further details of the restatement.
Throughout this release,'*' indicates the use of Alternative Performance
Measures. Please refer to pages 41 to 46 for further information including
reconciliations to statutory measures.
Consolidated Income Statement
Revenue
Group Revenue increased 18% to £5,940m (H125: £5,032m). Sales growth in
constant currency was 20% reflecting six months of Hibbett and Courir which
we acquired during the prior year, alongside gains in market share across
North America and Europe. Organic sales growth* was 2.7% at constant
currency, comprising 5.2% from net new space and store conversions
('non-LFL'*) and -2.5% like-for-like sales ('LFL'*).
Total store sales grew 20%, including the acquisition of Hibbett and Courir,
with organic growth of 6.6% reflecting the continued expansion of our store
footprint. Store sales now constitute 80% of Group revenue (H125: 78%) and
online 19% (H125: 21%). The remaining 1% of sales relates to the income from
our JD Gyms business.
Online performance in North America has been boosted by improved ranges
alongside targeted marketing campaigns. In Europe, the expansion of the ship
from store programme together with controlled price investments resulted in
increased online traffic and conversion as the period progressed. The UK has
a higher online mix relative to our other regions. Online sales were lower
in the UK year on year, reflecting an aggressive promotional trading
environment.
In contrast to the prior year and excluding the replica comparatives from the
Euro 24 football tournament, apparel has traded well throughout the period
driven by a compelling proposition and improved trends. Footwear has been
softer as we have seen a transition from some 'end of cycle' key product lines
into newer franchises. Footwear participation for the Group increased to 62%
(H125: 60%), with apparel falling to 28% (H125: 30%). Excluding Hibbett and
Courir (which have a higher weighting of footwear) apparel participation
increased to 31% (H125: 30%) whilst footwear decreased to 58% (H125: 59%).
Gross Margin before Adjusting items*
Total gross margin before adjusting items* was 48.0% (H125: 48.6%), 60 basis
points ('bps') behind the prior period. Excluding Hibbett and Courir, gross
margin was 40 bps lower year on year, driven principally by controlled price
investments in our online offer to retain engagement and conversion in a
competitive trading environment.
Operating Costs before Adjusting Items*
A breakdown of operating costs before adjusting items* can be seen in the
table below.
Operating costs before adjusting items* grew 21% to £2,414m with the increase
attributable to the inclusion of Courir, Hibbett, and costs from new space.
Excluding these impacts, underlying cost growth was flat at constant currency.
This reflects supply chain efficiencies and continued cost discipline which
has offset the impact of UK national insurance increases, salary inflation,
investment in software as a service (SaaS) technology (including cyber
security and systems), strengthened Group support functions and a £13m mark
to market charge. This mark to market charge primarily reflects the
revaluation of open UK FX contracts at period end date, as hedge accounting
has not yet been adopted by the Group. This charge is a non-cash timing
difference, arising between a period end date and the settlement of the FX
contracts.
£m 26 weeks to 2 August 2025 26 weeks to 3 August 2024 Change
(Restated)(1)
Selling and distribution expenses (2,144) (1,790) 20%
Administrative expenses before adjusting items* (290) (223) 30%
Share of profits of equity-accounted investments - 3 (100%)
Other operating income 20 12 67%
Operating costs before adjusting items* (2,414) (1,998) 21%
(1) A prior period adjustment of £21m has been recorded within selling
and distribution expenses, impacting the classification of marketing income
from operating costs before adjusting items* to gross profit. See Note 14 for
further information.
Operating Profit before Adjusting Items after Interest on Lease Liabilities*
Operating profit before adjusting items after interest on lease liabilities*
of £369m (H125: £402m) was down 6.3% on a constant currency basis and down
8.2% on a reported currency basis, driven by lower LFLs and a 60bps reduction
in gross margin consequently the operating margin before adjusting items after
interest on lease liabilities* was 6.2%, down 180bps on the prior period.
Net Finance Expense before Adjusting Items*
Net finance expense before adjusting items* in the period was £88m (H125:
£45m). Interest on lease liabilities increased from £49m to £70m due to
higher discount rates applied to new and remeasured leases in the period, the
additional costs arising from the ongoing strategic investment in new stores
and distribution centres over FY24 and FY25, along with the acquisitions of
Hibbett and Courir.
Finance income fell by £9m reflecting lower cash balances compared to the
previous period as the Hibbett and Courir acquisitions were funded partly
using cash and the Group completed a £100m share buyback in the first half.
Finance expense excluding interest on lease liabilities* rose by £13m
compared with the prior period, as a result of increased borrowings to fund
the acquisitions of Hibbett and Courir.
26 weeks to 2 August 2025 26 weeks to 3 August 2024 Change
%
Interest on lease liabilities (70) (49) 43%
Finance income 6 15 (60) %
Finance expense excluding interest on lease liabilities* (24) (11) 118%
Net finance (expense) / income excluding interest on lease liabilities* (18) 4
Net finance expense before adjusting items* (88) (45) 96%
Profit Before Tax and Adjusting Items*
Profit before tax and adjusting items* was £351m (H125: £406m), down 14% on
the prior period and down 12% on a constant currency basis. This reduction
reflects the 8.2% decline in operating profit before adjusting items after
lease interest* and the £22m increase in net finance expense excluding
interest on lease liabilities* due to lower cash balances and incremental
borrowings related to the acquisitions of Hibbett and Courir.
Adjusting Items*
Adjusting items* for the period were a net charge of £213m (H125: net charge
of £280m), as detailed in the table below.
£m 26 weeks to 2 August 2025 26 weeks to 3 August 2024
Impairment of tangible and intangible assets 1 101
Acquisition related costs 7 22
Divestment and restructuring - 13
Integration costs 7 -
Amortisation of acquired intangibles 35 23
Adjusting items within administrative expenses* 50 159
Movement in present value of put and call options 163 121
Adjusting items within net financial expense* 163 121
Adjusting items* 213 280
The total charge for the period is £213m of which £7m is a cash outflow and
£206m is a non-cash charge.
The integration costs of £7m (H125: nil) are associated with the integration
of the Group's US business following the acquisition of Hibbett. This is a
continuation of a significant multi-year programme to create an integrated
platform for the nationwide growth of the JD Brand, Community and City
Speciality fascias in North America with an efficient supply chain and back
office. We are expecting this programme to deliver at least $25m annual
savings over this time frame at a one‑off cash cost of around 1x the savings
delivered.
Acquisition-related costs £7m (H125: £22m) include £3m of deferred
consideration for the acquisition of the 20% minority shareholding in Mainline
Menswear Holdings Limited on 27 September 2024. This has been accounted for
under IAS 19 as a service cost. The remaining £4m are non cash costs of fair
value uplifts on the Hibbett acquisition.
Amortisation of acquired intangible assets totalled £35m (H125: £23m).
In March 2025, an amendment was made to the Genesis shareholders' agreement.
Under the revised terms, the exercise periods for the Non-Controlling Interest
(NCI) put option and the JD call options have been deferred and can now be
paid in two equal instalments of 10% with two exercise periods, as opposed to
the previous agreement of four equal instalments of 5% with four exercise
periods.
Any option tranche can be deferred into the following exercise period, in line
with the previous agreement. There has been no other changes to key terms in
the agreement, other than the exercise periods noted above.
The £163m charge relates to an increase in put and call option liabilities
arising from the Genesis agreement. The £163m is made up of a £232m increase
under constant currency; with a £69m decrease due to movements in foreign
exchange rates. As set out in the FY25 Annual Report, the shareholders'
agreement was amended during the year to defer the option exercise periods,
resulting in the full liability being classified as non-current. The valuation
methodology and £1.5 billion cap remain unchanged.
Operating Profit
Operating profit increased 33% to £389m (H125: £292m). This is primarily
due to a decrease in adjusting items charged within operating profit of £109m
due to lower impairments of tangible and intangible assets, acquisition
related costs and divestment and restructuring costs.
Profit Before Tax
Profit before tax increased 10% to £138m (H125: £126m) as adjusting items
are £67m lower, offsetting the £33m decline in adjusted operating profit,
and the £22m increase in net finance expense.
Income Tax Expense
The income tax expense was £76m (H125: £74m).
The income tax expense before adjusting items* was £89m (H125: £104m). The
effective tax rate before adjusting items* remained consistent at 25.4% (H125:
25.6%).
Profits Attributable to Non-Controlling Interests
Profit attributable to non-controlling interests decreased by £9m, from £30m
in H125 to £21m in H126. The reduction primarily reflects the impact of NCI
buy outs completed in FY25, which reduced the Group's overall NCI share. The
key NCI buy outs being: Sportzone in Spain and Portugal, Mainline in the UK,
and DTLR in the US. In addition, the contribution from the US business was
lower year on year. The only material NCI remaining in the Group is the 20%
holding in Genesis Topco Inc.
Earnings Per Share
On a statutory basis, basic and diluted earnings per ordinary share increased
from 0.42p to 0.80p due to an 86% increase in profits attributable to equity
holders of the parent, as well as a reduction in the average number of
ordinary shares in issue. The share reduction is a result of the £100m
buyback scheme in the period to return surplus capital to shareholders.
Adjusted basic earnings per ordinary share* decreased 11% from 5.15p to 4.60p
(down 8.5% constant currency) due to lower adjusted profits attributable to
the parent in the period before adjusting items.
Segmental Report
A performance summary of the three reportable segments in the Group is shown
in the tables below.
£m/26w to 2 August 2025 JD Complementary Concepts Sporting Goods & Outdoor Total
Revenue 3,674 1,567 699 5,940
Gross profit 1,811 733 309 2,853
Gross margin 49.3% 46.8% 44.2% 48.0%
Operating costs before adjusting items* (1,549) (590) (275) (2,414)
Interest on lease liabilities (45) (16) (9) (70)
Operating profit before adjusting items after interest on lease liabilities 217 127 25 369
Operating margin before adjusting items and after interest on lease 5.9% 8.1% 3.6% 6.2%
liabilities*
£m/26w to 3 August 2024 JD Complementary Concepts Sporting Goods & Outdoor Total
Revenue 3,607 715 710 5,032
Gross profit (restated)(1) 1,802 334 313 2,449
Gross margin (restated)(1) 46.7 %
50.0 % 44.1 % 48.6 %
Operating costs before adjusting items* (restated)(1) (1,479) (236) (283) (1,998)
Interest on lease liabilities (37) (6) (6) (49)
Operating profit before adjusting items after interest on lease liabilities 286 92 24 402
Operating margin before adjusting items and after interest on lease 7.9 % 12.9 % 3.4 % 8.0%
liabilities*
(1) Please refer to Note 14 for further details of the restatement.
JD
JD segment revenue was £3,674m, up 1.9% on the prior period and 3.5% at
constant currency. This segment represented 62% of the Group's revenue ( H125:
72%) and continues to be our core focus under the JD First strategy. Organic
sales growth was 3.7% reflecting 6.7% net new space and a 3.0% reduction in
LFL sales*. The growth, in line with our strategy, came from 90 store openings
of which 44 were in Europe and 31 in North America alongside four
key flagships in Las Vegas, Vancouver, Melbourne and Manchester (The Trafford
Centre). Gross margin was 49.3% (H125: 50.0%), down 70bps on the prior period
principally from controlled price investments in online to boost
competitiveness and drive engagement with consumers. Store sales account for
78% of JD Revenue, online 18% and the remaining 2% is from our JD Gyms
business.
Outside of the replica comparatives of the Euro 24 football tournament, our
Apparel proposition has resonated well with our consumer during the period.
In footwear, our expanding brand partnerships has enabled us to offer newer
franchises alongside navigating some 'end of cycle' product lines.
JD UK
The UK is JD's most mature market and saw revenues fall 1.8% to £1,214m.
Net new space growth was 1.7% alongside a 2.9% reduction in LFL.
The first quarter saw dry, warm weather which drove conversion in stores
enabling us to uphold our pricing disciplines. The second quarter had
challenging comparatives from the prior year Euro 24 football tournament
alongside strong franchise footwear trends, particularly in womens and
juniors.
Performance in apparel has been robust, driven by a strong and compelling
proposition, especially in womens and juniors. Footwear has seen a transition
in trend from 'end of cycle' key product lines into newer franchises.
Operating profit before adjusting items and after lease interest* was down
6.2% driven by an increase in people costs due to wage legislation, increased
property costs from annualised stores and new store openings, including the
Trafford Centre, Manchester and investment in technology infrastructure and
cyber resilience.
JD Gyms revenue increased 10% to £67m as the number of operating gyms
increased from 92 to 97, following the acquisition of three gyms and the
opening of two in the period.
JD Europe
JD Europe growth continues to be driven by new store rollouts and conversions
supported by a maturing estate and increasing market awareness of the JD
brand. Revenue grew 12% to £1,094m and by 12% on a constant currency basis.
Organic sales growth was 12% , comprising net new space growth of 12.8% and a
0.8% reduction in LFL sales*.
Extreme weather events have impacted store footfall over the period, however
online traffic and conversion has continued in a positive trend with the
ongoing roll out of ship from store and click-and-collect supported by
targeted promotional activity. The second quarter had challenging
comparatives from strong franchise footwear trends, particularly in womens and
juniors. While replica sales declined on the back of the Euro 24 football
tournament, the impact was modest compared to the UK. Underlying apparel
performance was driven by strong results in Northern markets, particularly in
mens and junior categories.
Operating profit before adjusting items and after lease interest* was down 36%
on the prior period driven primarily by the expansion of the store estate in
both new and annualising stores alongside indexed increases in wages and
rents, with higher distribution centre volumes contributing to rising supply
chain costs before the benefits of our new distribution centres start to
materialise.
JD North America
JD North America revenue fell 2.6% to £1,128m on a reported basis but
increased 1.3% at constant currency. Net new space growth was 6.6% as we
continue to manage the conversion of the Finish Line fascia to JD, build
strong brand awareness of the JD fascia and gain market share. LFL sales
declined 5.2% for the period but saw improved trends quarter on quarter,
particularly in our apparel proposition and across our online platform. Gross
margin was 47.5% (H125: 48.4%) due to short term promotional intensity in
Finish Line as the estate diminishes. Operating profit before adjusting items
and after lease interest* was down 36%.
Product launches have driven footfall in JD stores and newer franchises have
resonated well with our consumer. Apparel has seen encouraging growth with own
brand performing well in conjunction with specific product categories. As the
JD estate grows, we expect this apparel trend to continue. JD online sales
have grown 84% in H1 on the back of focused marketing investment and evolving
brand awareness.
Finish Line has been more promotional in H1, which has generated sales
enabling cash margin to be maintained. The Finish Line at Macy's has seen
store performance driven by newer franchises.
JD Asia Pacific
Revenue grew 1.7% to £237m and 5.8% on a constant currency basis despite the
impact from the earthquake in Thailand, timing of Chinese New Year and the
tourism impact in South East Asia following the US tariff announcement. We saw
strong net new space growth of 8.4%, driven by new store openings and the
replatforming of the Thailand and Singapore websites. LFL sales declined
2.4%, being 5.5% decline in Q1 for the aforementioned reasons and 0.3% growth
in Q2. Gross margin was 48.9% (H125: 49.8%) indicative of the competitive
online market across the region. Operating profit before adjusting items and
after lease interest* remained flat reflecting well executed cost
control disciplines.
Complementary Concepts
Revenue of £1,567m was up 119% on the previous period and 127% at constant
currency, reflecting the acquisition of Hibbett in July 2024 and Courir in
November 2024.
Revenue in Community (Hibbett) and City Speciality (Shoe Palace, DTLR and City
Gear) fascias, was up 100% to £1,189m. Hibbett and City Gear contributed
£637m of revenue in the period. Net new space growth of 7.7% reflected our
apparel proposition resonating with the consumer and the popularity of newer
franchises. LFL sales decline of 1.2% was skewed towards Q1 (-4.0%) driven by
the delay in launches, whilst Q2 saw growth of 1.4%.
In June, the operations of 198 City Gear stores were transferred to DTLR and
Shoe Palace with promising initial performance to date. Hibbett and City Gear
contributed £637m of revenue in the period.
Revenue in complementary fascias, comprising MIG and Courir, grew 217% on the
previous period, following the acquisition of Courir. Courir contributed
£289m of revenue in the period. 35 non-JD fascia stores in Eastern Europe
were closed in the period and 1 converted to JD as we continue the ongoing
rationalisation of the number of non-JD fascias and simplification of our
business.
Sporting Goods and Outdoors
Revenue in Sporting Goods through ISRG (Sprinter and Sportzone) in Iberia and
Cosmos in Greece and Cyprus, increased 0.7% to £450m despite the extreme
weather events, power outage across Iberia in April. LFL growth was 3.0% with
net new space decline of 1.8%. Operating profit before adjusting items and
after lease interest grew 9.1% to £24m.
Outdoors revenue of £250m was down 4.9% on the prior period driven by 5.1%
LFL decline partially offset by 0.9% net new space. The drier, warmer
weather in the UK increased product mix towards lower margin outdoor living
products (tents and camping equipment) and away from apparel and footwear,
however gross margin increased 70bps to 44.8% (H125: 44.1%) due to proactively
reducing our promotional activity, as we develop the commercial approach in
our Outdoors businesses.
Geographical Report
£m/26 weeks to 2 August 2025 North America Europe UK Asia Pacific Total
Revenue 2,318 1,921 1,464 237 5,940
Operating profit before adjusting items and after interest on lease 181 53 111 24 369
liabilities*
Operating margin before adjusting items and after interest on lease 7.8% 2.8 % 7.6 % 6.2 %
liabilities*
10.1 %
No of stores 2,529 1,593 643 107 4,872
£m/26 weeks to 3 August 2024 North America Europe UK Asia Pacific Total
Revenue 1,754 1,547 1,499 232 5,032
Operating profit before adjusting items and after interest on lease 196 49 133 24 402
liabilities*
Operating margin before adjusting items and after interest on lease 3.2 % 8.9 % 8.0 %
liabilities*
11.2 % 10.3 %
No of stores 2,450 1,296 668 92 4,506
North America is the largest geographic area from both a Revenue and Operating
profit before adjusting items* perspective with 39% of sales and 49% of
operating profit.
Free Cash Flow
A summary cashflow showing how the change in cash and cash equivalents((1)) is
calculated, can be seen in the table below.
£m 26 weeks to 26 weeks to
2 August 2025 3 August 2024
(unaudited) (unaudited)
Profit before tax 138 126
Add back impairments of intangible assets and investments - 96
Add back other non-cash adjusting items 171 140
Depreciation and amortisation of non-current assets 467 347
Repayment of lease liabilities (230) (189)
Operating cashflow net of lease repayments 546 520
Change in working capital (312) (239)
Capital expenditure (216) (245)
Income taxes paid (96) (132)
Other 10 (7)
Free Cash Flow (68) (103)
Repayment of interest-bearing loans and borrowings (37) (42)
Drawdown of interest-bearing loans and borrowings 66 802
Payment of arrangement fees on new financing (7) -
Acquisition of subsidiaries and NCI - (841)
Cash consideration of disposals 1 4
Equity dividends paid (34) (31)
Share buyback (101) -
Change in cash and cash equivalents((1)) (180) (211)
Cash and cash equivalents at the beginning of the period((1)) 695 1,102
Change in net cash and cash equivalents (180) (211)
Foreign exchange (losses)/gains on cash and cash equivalents (13) (11)
Cash and cash equivalents at the end of the period((1)) 502 880
(1) Cash and cash equivalents equates to the cash and cash equivalents
presented in the Consolidated Statement of Cash Flows on page 24.
Profit before tax was £138m (H125: £126m).
Non-cash add backs of impairments and adjusting items are explained within the
financial performance section of the CFO report above.
Total depreciation and amortisation was £467m, up £120m or 34.6%, on the
prior period. The increase was driven primarily by assets acquired through
Hibbett and Courir (£80m), together with the impact of our ongoing store
investment programme and recent investment in supply chain distribution
centres.
Lease liability repayments increased to £230m (H125: £189m), driven mostly
by the extra leases acquired with Hibbett and Courir, and our store
expansion programme.
As a result, the Group operating cashflow net of lease repayments was £546m,
which was an increase of £26m compared to the prior period, reflecting the
cash generative nature of the JD Group.
There was an increase in working capital of £312m in the period. This was due
to an increase in inventory of £314m reflecting the working capital
seasonality of the business. Inventory levels were higher than the prior half
year, driven mainly by the addition of inventory from the Courir acquisition,
together with stock management initiatives to support the US warehouse
transition and City Gear store conversions. The Group remains well positioned
on inventory as it enters the peak trading period.
Capital expenditure in the period was £216m, down £29m on the previous
period reflecting lower investment in our supply chain with significant new DC
capacity created in previous years in Europe and Australia.
£m 26 weeks to 2 August 2025 26 weeks to 3 August 2024
Stores & gyms £169m £160m
Supply chain infrastructure £24m £61m
Technology and other £23m £24m
Total capital expenditure excluding Other Non-Current Assets £216m £245m
Tax payments decreased from £132m to £96m primarily reflecting higher
payments on account in the prior period, particularly in the US and UK.
As a result, the free cash outflow was £68m in the period, compared to an
outflow of £103m in the prior period.
On 8 July 2025, the Group successfully refinanced its core debt facilities,
securing a new $700m three-year Term Loan to replace the remaining balance of
the facility originally raised for the Hibbett Inc. acquisition, alongside a
new £1bn syndicated Revolving Credit Facility with a five-year term. Both
facilities include covenant packages on net debt leverage and fixed charge
cover, with cross‑guarantees across key Group subsidiaries. The refinancing
strengthens the Group's liquidity position, extends maturity profiles, and
provides diversified access to funding across GBP, EUR, and USD. The Group
incurred £7m of arrangement fees in relation to the new financing facilities.
During the period, the Group repaid £37m of existing interest-bearing loans
and borrowings, while also drawing down £66m from our revolving credit
facility to support liquidity.
Dividend payments amounted to £34m in the period.
As announced on the 9 April 2025, the Group commenced a share buyback
programme to repurchase the Group's own ordinary shares on the open market.
During the 6-month period ended 2 August 2025, the Group repurchased a total
of 121,730,000 ordinary shares at a total cost of £101m, inclusive of
transaction costs.
As a result, the change in net cash and cash equivalents in the period was an
outflow of £180m. FX losses on cash and cash equivalents amounted to £13m.
Despite this reduction, we retain a strong balance sheet as our closing cash
and cash equivalents balance was £502m. Net debt was £3,180m and net debt
before lease liabilities* was £125m. Total available liquidity at 2 August
2025 was £1,372m.
Dividend
The Board has declared an interim dividend of 0.33p (H125: 0.33p) pence per
share, consistent with the prior year. In line with our dividend policy, this
represents approximately one third of the final dividend of 1.00 pence per
share paid for FY25.
Consolidated Statement of Financial Position
Total assets were up on the year end at £10,093m (FY25: £9,954m), driven by
growth in current assets. In particular, inventory increased by £273m to
£2,294m, reflecting both seasonal build ahead of back to school and the
expansion of store numbers.
Total liabilities increased to £6,883m (FY25: £6,582m) with the main
movement being a £163m increase in put and call option liabilities relating
to the Genesis agreement. As disclosed in our FY25 Annual Report, the
shareholders' agreement was amended during the year to defer the option
exercise periods, resulting in the full liability being presented as
non‑current. The option valuation methodology and £1.5bn cap remain
unchanged.
Foreign exchange movements during the period had a significant impact across
the Group's reported balance sheet. The translation of overseas subsidiaries
into sterling drove movements across all major line items of assets,
liabilities, and equity. These translation effects are non-cash in nature and
do not affect the Group's underlying trading performance or liquidity, but
they do influence the reported statutory position. Given the scale of the
Group's international operations, there will always be movements in the Group
balance sheet, reported in sterling, driven by changes in FX rates.
Post Balance Sheet Events
Share Buyback
As announced on 27 August 2025, the company will undertake a second share
buyback programme to repurchase ordinary shares with a market value of up to
£100 million, to increase the total buyback to £200 million. The purpose of
the programme is to reduce share capital and, accordingly, the shares
repurchased will be subsequently cancelled or held in treasury. We expect to
commence the programme post the announcement of our H1 results on 24 September
2025.
Unaudited Condensed Consolidated Income Statement
For the 26 weeks ended 2 August 2025
26 weeks to 2 August 2025 26 weeks to 3 August 2024
(unaudited)
(unaudited) (restated)(1)
Note Profit before Adjusting Profit for Profit before Adjusting Profit for
adjusting
items
the period
adjusting
items
the period
items
£m
£m
items
£m
£m
£m
£m
Revenue 2 5,940 - 5,940 5,032 - 5,032
Cost of sales (3,087) - (3,087) (2,583) - (2,583)
Gross profit 2,853 - 2,853 2,449 - 2,449
Selling and distribution expenses (2,144) - (2,144) (1,790) - (1,790)
Administrative expenses 3 (290) (50) (340) (223) (159) (382)
Share of profit of equity-accounted investees - - - 3 - 3
Other operating income 20 - 20 12 - 12
Operating profit 439 (50) 389 451 (159) 292
Finance income 6 - 6 15 - 15
Finance expenses 3 (94) (163) (257) (60) (121) (181)
Net finance expense (88) (163) (251) (45) (121) (166)
Profit before tax 351 (213) 138 406 (280) 126
Income tax expense 4 (89) 13 (76) (104) 30 (74)
Profit for the period 262 (200) 62 302 (250) 52
Attributable to equity holders of the parent 41 22
Attributable to non-controlling interest 21 30
Basic earnings per ordinary share 5 0.80p 0.42p
Diluted earnings per ordinary share 0.80p 0.42p
(1) Please refer to Note 14 for further details of the
restatement.
Unaudited Consolidated Statement of Comprehensive Income
For the 26 weeks ended 2 August 2025
26 weeks to 2 August 2025 26 weeks to 3 August 2024
(unaudited)
(unaudited)
£m
£m
Profit for the period 62 52
Other comprehensive income:
Items that may be reclassified subsequently to the Consolidated Income
Statement:
Exchange differences on translation of foreign operations (85) (36)
Items that won't be reclassified subsequently to the Consolidated Income
Statement:
Fair value movement on financial investments (6) -
Total other comprehensive income/(expense) for the period (91) (36)
Total comprehensive income for the period (net of income tax) (29) 16
Attributable to equity holders of the parent (18) (9)
Attributable to non-controlling interest (11) 25
Unaudited Condensed Consolidated Statement of Financial Position
As at 2 August 2025
As at As at As at
2 August 2025 1 February 2025 3 August 2024
(unaudited) £m (unaudited)
£m £m
Non-current assets
Intangible assets 2,261 2,364 1,940
Property, plant and equipment 1,531 1,490 1,350
Investment properties - 3 3
Right-of-use assets 2,773 2,813 2,624
Other assets 73 71 56
Investments in associates and joint ventures - 1 46
Other investments 36 38 -
Trade and other receivables 1 1 1
Deferred tax assets 32 32 38
Total non-current assets 6,707 6,813 6,058
Current assets
Inventories 2,294 2,021 2,014
Trade and other receivables 403 277 289
Income tax receivables 98 55 43
Cash and cash equivalents 531 731 947
Current assets excluding held-for-sale 3,326 3,084 3,293
Assets held-for-sale 60 57 -
Total current assets 3,386 3,141 3,293
Total assets 10,093 9,954 9,351
Current liabilities
Interest-bearing loans and borrowings (122) (88) (93)
Lease liabilities (544) (493) (501)
Trade and other payables (1,744) (1,580) (1,489)
Put and call option liabilities (12) (188) (207)
Provisions (6) (10) (13)
Income tax liabilities (33) (20) (14)
Current liabilities excluding held-for-sale (2,461) (2,379) (2,317)
Liabilities held-for-sale (49) (50) -
Total current liabilities (2,510) (2,429) (2,317)
Non-current liabilities
Interest-bearing loans and borrowings (534) (591) (813)
Lease liabilities (2,511) (2,566) (2,374)
Other payables (137) (145) (140)
Put and call option liabilities (1,008) (669) (714)
Provisions (25) (27) (21)
Deferred tax liabilities (158) (155) (134)
Total non-current liabilities (4,373) (4,153) (4,196)
Total liabilities (6,883) (6,582) (6,513)
Net assets 3,210 3,372 2,838
Capital and reserves
Issued ordinary share capital 3 3 3
Share premium 468 468 468
Treasury shares (66) - -
Capital redemption reserve - - -
Put and call option reserve (272) (277) (283)
Share based payment reserve 5 4 4
Foreign currency translation reserve 38 91 41
Retained earnings 2,595 2,633 2,181
Total equity attributable to equity holders of the parent 2,771 2,922 2,414
Non-controlling interest 439 450 424
Total equity 3,210 3,372 2,838
Unaudited Condensed Consolidated Statement of Changes in Equity
For the 26 weeks ended 2 August 2025
Ordinary Share Treasury shares Capital redemption reserve Put and call option reserve Share-based payments reserve Foreign currency translation reserve Retained earnings Total equity attributable to equity holders of Non-controlling interest Total
the parent (unaudited)
share premium £m £m £m £m £m £m
£m equity (unaudited)
£m
capital £m £m
£m
Balance at 1 February 2025 3 468 - - (277) 4 91 2,633 2,922 450 3,372
Profit for the period - - - - - - - 41 41 21 62
Other comprehensive income: -
Exchange differences on translation of - - - - - - (53) - (53) (32) (85)
foreign operations
Total other comprehensive (loss) - - - - - - (53) - (53) (32) (85)
Fair value movement on financial - - - - - - - (6) (6) - (6)
investments
Total comprehensive income for the period - - - - - - (53) 35 (18) (11) (29)
Dividends to equity holders - - - - - - - (34) (34) - (34)
Additions to put and call options held - - - - - - - - - - -
with non- controlling interests
Lapsed and disposed put options held by - - - - 5 - - (4) 1 - 1
non- controlling interests
Treasury Shares acquired in the period - - (101) - - - - - (101) - (101)
Treasury Shares cancelled in the period - - 35 - - - - (35) - - -
Share-based payment charge - - - - - 1 - - 1 - 1
Balance at 2 August 2025 3 468 (66) - (272) 5 38 2,595 2,771 439 3,210
Unaudited Condensed Consolidated Statement of Changes in Equity
For the 26 weeks ended 3 August 2024
Ordinary Share Treasury shares Capital redemption reserve Put and call option reserve Share-based payments reserve Foreign currency translation reserve Retained earnings Total equity attributable to equity holders of Non-controlling interest Total
the parent (unaudited)
share premium £m £m £m £m £m £m
£m equity (unaudited)
£m
capital £m £m
£m
Balance at 3 February 2024 3 468 - - (302) 3 71 2,214 2,457 412 2,869
Profit for the period - - - - - - - 22 22 30 52
Other comprehensive income:
Exchange differences on translation of - - - - - - (30) - (30) (6) (36)
foreign operations
Total other comprehensive (loss) - - - - - - (30) - (30) (6) (36)
Total comprehensive income for the period - - - - - - (30) 22 (30) 24 (6)
Dividends to equity holders - - - - - - - (31) - - -
Lapsed and disposed put options held by non- - - - - 16 - - (15) 16 - 16
controlling interests
Acquisition of non-controlling interest - - - - 3 - - (9) 3 (9) (6)
Divestment of non-controlling interest - - - - - - - - - (3) (3)
Share-based payment charge - - - - - 1 - - 1 - 1
Balance at 3 August 2024 3 468 - - (283) 4 41 2,181 2,414 424 2,838
Unaudited Condensed Consolidated Statement of Cash Flows
For the 26 weeks ended 2 August 2025
26 weeks to 26 weeks to
2 August 2025 3 August 2024
(unaudited) (unaudited)
£m £m
Note
Net cash from operating activities
Profit after taxation 62 52
Adjustments reconciling profit after tax to operating cash flows 508 460
Cash generated from operations 10 570 512
Interest paid (22) (10)
Lease interest paid (70) (49)
Income taxes paid (96) (132)
Net cash from operating activities 382 319
Cash flows from investing activities
Interest received 6 15
Proceeds from sale of non-current assets 1 3
Acquisition of intangible assets (13) (13)
Acquisition of property, plant and equipment (204) (231)
Acquisition of other non-current assets (9) (7)
Cash consideration of disposals (net of cash disposed) - 4
Acquisition of subsidiaries (net of cash acquired) - (816)
Net cash used in investing activities (219) (1,045)
Cash flows from financing activities
Repayment of interest-bearing loans and borrowings (37) (45)
Drawdown of interest-bearing loans and borrowings 66 804
Payment of arrangement fees on new financing (7) -
Repayment of lease liabilities (230) (189)
Acquisition of non-controlling interests - (24)
Equity dividends paid (34) (31)
Share buy-back (101) -
Net cash (used in) / from financing activities (343) 515
Net (decrease) in cash and cash equivalents (180) (211)
Cash and cash equivalents at the beginning of the period 695 1,102
Foreign exchange losses on cash and cash equivalents (13) (11)
Cash and cash equivalents at the end of the period 502 880
1. BASIS OF PREPARATION
General Information
JD Sports Fashion Plc (the 'Company') is a Company incorporated in the United
Kingdom and registered in England and Wales. The financial statements for the
26-week period ended 2 August 2025 represent those of the Company and its
subsidiaries (together referred to as the 'Group'). The financial statements
were authorised for issue by the Board of Directors on 24 September 2025.
Basis of Preparation
The financial information included in this preliminary announcement has been
prepared in accordance with the recognition and measurement criteria
of International Financial Reporting Standards (IFRSs) and IAS 34 - Interim
financial reporting.
The financial statements are presented in Pounds Sterling, rounded to the
nearest million in the current and comparative period. The Group has changed
the presentation of numerical disclosures from one decimal place to whole
numbers to enhance clarity and consistency across financial reporting. Prior
period comparatives have been restated accordingly (see Note 14 for further
details).
These unaudited condensed consolidated interim financial statements have been
prepared in accordance with the Disclosure Guidance and Transparency Rules of
the UK Financial Conduct Authority, and with IAS 34 'Interim Financial
Reporting' under UK‑adopted international accounting standards. Unless
otherwise stated, the accounting policies applied, and the judgements,
estimates and assumptions made in applying these policies, are consistent with
those used in preparing the Annual Report and Financial Statements 2025. The
financial period represents the 26 weeks ended 2 August 2025 (prior financial
period 26 weeks ended 3 August 2024, prior financial year 52 weeks ended
1 February 2025).
These condensed consolidated interim financial statements for the current
period and prior financial periods do not constitute statutory accounts
as defined in section 434 of the Companies Act 2006. A copy of the statutory
accounts for the prior financial year has been filed with the Registrar
of Companies. The auditor's report on those accounts was not qualified, did
not include a reference to any matters to which the auditor drew attention by
way of emphasis without qualifying the report and did not contain statements
under section 498 (2) or (3) of the Companies Act 2006.
Refinancing
Term Loan
On 8 July 2025 the Group entered into a new Term Loan facility for a total
commitment of $700 million for the purpose of refinancing the existing
Term Loan which was drawn for the acquisition of Hibbett Inc in July 2024.
From the original Term Loan of $1 billion the balance of $700 million was
refinanced and the new facility was drawn in full. The counterparties to the
new Term Loan comprise a larger syndicate of 10 banks, representing an
increase on the lender group under the previous facility.
The term of the facility is 3 years and expires on 8 July 2028 followed by 2
extension options subject to lender consent. As these are contingent on
third-party agreement rather than being contractual rights of the Group, they
are not considered embedded derivatives or loan commitments within the scope
of IFRS 9 and are not separately recognised.
The Group is subject to covenants on net debt leverage and a fixed charge
cover. The interest rate payable on the loan is at a 6 month interval at a
rate of SOFR (Secured Overnight Financing Rate) plus a margin of 1%.
As at 1 August 2025 this facility encompassed cross guarantees between the
Company, JD Sports Fashion Europe Holdings Limited, Genesis Holdings Inc,
Hibbett Retail Inc, The Finish Line Inc, The Finish Line USA Inc, Shoe Palace
Corporation, DTLR Inc, Sprinter Megacentros del Deporte SL, JD Spain Sports
Fashion 2010 SL, JD Sports Fashion Australia PTY Ltd, JD Sports Fashion SRL,
John David Sports Fashion (Ireland) Limited.
Bank Facilities
As at 1 August 2025 the Group had a £1 billion syndicated Revolving Credit
facility. This was refinanced on 8 July 2025 and the previous £700 million
Revolving Credit facility and $300m Asset Based Lending facility were
cancelled at this time. The borrowers on this facility are the Company, JD
Sports Fashion Europe Holdings Limited and Genesis Holdings Inc. The
counterparties to the new RCF comprise a larger syndicate of 10 banks,
representing an increase on the lender group under the previous facility.
The term of the facility is 5 years and expires on 8 July 2030 followed by 2
extension options subject to lender consent. As these are contingent on
third-party agreement rather than being contractual rights of the Group, they
are not considered embedded derivatives or loan commitments within the scope
of IFRS 9 and are not separately recognised.
The Group is subject to covenants on net debt leverage and a fixed charge
cover. The interest rate payable on the loan is at a 1, 3- or 6-month
intervals at a base rate applicable to the currency of the loan plus a margin
of 0.8%. The facility is available to draw in GBP, EUR and USD.
As at 1 August 2025 this facility encompassed cross guarantees between the
Company, JD Sports Fashion Europe Holdings Limited, Genesis Holdings Inc,
Hibbett Retail Inc, The Finish Line Inc, The Finish Line USA Inc, Shoe Palace
Corporation, DTLR Inc, Sprinter Megacentros del Deporte SL, JD Spain Sports
Fashion 2010 SL, JD Sports Fashion Australia PTY Ltd, JD Sports Fashion SRL,
John David Sports Fashion (Ireland) Limited.
As the new Term Loan and RCF refinanced existing drawn balances, there was no
net cash movement at the date of refinancing, other than the settlement of
transaction fees and accrued interest. The refinancing has been assessed as a
modification of the existing liabilities, as no substantive cash flows
occurred and, other than an increase in the size of the lender syndicate, the
counterparties remained largely unchanged.
Going Concern
The Directors consider it appropriate to prepare the Group's financial
statements on a going concern basis. In assessing going concern at HY26, the
Board confirmed that the FY25 severe but plausible downside scenarios, which
are aligned to the Group's risk register and disclosed as principal risks in
the Annual Report, remain appropriate and relevant. The analysis undertaken at
HY26 showed that the scenarios run and the headroom available are materially
consistent with the FY25 year-end position, including the impact of the
refinancing and the FY25 Hibbett and Courir acquisitions.
As at 2 August 2025, JD plc held net debt before lease liabilities of £125m
(H125: net cash £41m, FY25: net cash £52m) and total available liquidity
of £1,372m.
The Directors have, at the time of approving the condensed consolidated
interim financial statements, a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future, which reflects a period of 12 months from the date of approval
of the condensed consolidated interim financial statements and have
concluded that there are no material uncertainties relating to going concern.
The Directors have therefore continued to adopt the going concern basis in
preparing the condensed consolidated interim financial statements.
1. Basis of Preparation (continued)
Alternative Performance Measures
The Directors measure the performance of the Group based on a range of
financial measures, including measures not recognised by International
Accounting Standards ('IAS') in conformity with the requirements of the
Companies Act 2006. These Alternative Performance Measures may not be directly
comparable with other companies' Alternative Performance Measures and the
Directors do not intend these to be a substitute for, or superior to, IFRS
measures. The Directors believe that these Alternative Performance Measures
assist in providing additional useful information on the trading performance
of the Group.
Alternative Performance Measures are also used to enhance the comparability of
information between reporting periods, by accounting for adjusting items.
Adjusting items are disclosed separately when they are considered unusual in
nature and not reflective of the trading performance and profitability of the
Group. The separate reporting of adjusting items, which are presented as
adjusting within the relevant category in the Consolidated Income Statement,
helps provide an indication of the Group's trading performance. An explanation
as to why items have been classified as adjusting items is given in Note 3.
Further information can be found in the Alternative Performance Measures
section.
Adoption of New and Revised Standards
There are no new and revised accounting standards and interpretations that
became effective for the period beginning on 2 February 2025 that have had a
material impact on the Group's condensed consolidated interim financial
statements. No other standards or interpretations issued but not yet effective
have been early adopted.
Accounting Policies
Supplier Rebates
Supplier rebates include promotion cost contributions and marketing initiative
support and are recognised in the Consolidated Financial Statements when they
are contractually agreed with the supplier and can be reliably measured. Such
rebates typically relate to the launch of such initiatives and therefore
rebate income is typically recognised across the period in which launch costs
are recognised.
Contributions towards store fixtures are recognised as a credit within the
Consolidated Income Statement within the period in which they are received.
Other rebates are agreed with suppliers retrospectively once specific targets
have been achieved and recognised after the end of the relevant supplier's
financial year.
Segmental Analysis
IFRS 8 'Operating Segments' requires the Group's segments to be identified on
the basis of internal reports about components of the Group that are regularly
reviewed by the Chief Operating Decision Maker (CODM) to allocate resources to
the segments and to assess their performance. The CODM is considered to be
the Chief Executive Officer of JD Sports Fashion Plc. Information reported to
the CODM is focused on the nature of the businesses within the Group.
The Group's reportable segments under IFRS 8 are 'JD', 'Complementary
Concepts' and 'Sporting Goods and Outdoors'. In accordance with IFRS 8.12,
the Group have aggregated several operating segments with similar economic
characteristics into each of the reportable segment, while remaining
consistent with core principles of IFRS 8.
Treasury Shares
Treasury shares represent the Company's own equity instruments that have been
reacquired and are held by the Company or by its subsidiaries. Treasury shares
are recognised at cost and are deducted from equity in the consolidated
statement of financial position. No gain or loss is recognised in profit or
loss on the purchase, sale, issue, or cancellation of the Group's own equity
instruments, nor the related transaction fees.
Treasury Shares arose following the Buyback scheme entered into from April
2025. An additional Capital Redemption Reserve has also arisen where Treasury
shares have been cancelled, reflecting the nominal value of the Treasury
shares, with the excess cost above nominal value being charged to Retained
Earnings.
Dividends are not paid on treasury shares and they are excluded from the
weighted average number of ordinary shares used in the calculation of earnings
per share.
Critical Accounting Judgements and Key Sources of Estimation Uncertainty
The preparation of financial statements in conformity with adopted IFRSs
requires management to make judgements, estimates and assumptions that affect
the application of policies and reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making the judgements and estimates about carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates.
Critical Accounting Judgements
The following are critical judgements, apart from those involving estimations
(which are presented separately below), that management have made in the
process of applying the Group's accounting policies and that have the most
effect on the amounts recognised in the Consolidated Group Financial
Statements.
Adjusting Items
Management exercises significant judgement in assessing whether items should
be classified as adjusting items. This assessment covers the nature of the
item, cause of occurrence and/or scale of impact of that item on the reported
performance. In determining whether an item should be presented as adjusting,
the Group considers items which are significant because of either their size
or their nature, which management believes would distort an understanding of
earnings if not separately presented. In the prior period the Group extended
its definition of adjusting Items to include amortisation of acquired
intangibles. This provides an indication of the Group's trading performance in
the normal course of business.
An explanation as to why items have been classified as adjusting is given in
Note 3. Further information about metrics that the Group utilises which
exclude adjusting items can be found in the Alternative Performance Measures
section.
Key Sources of Estimation Uncertainty
The key assumptions about the future, and other key sources of estimation
uncertainty at the reporting period end, that may have a significant risk
of causing a material adjustment to the carrying amount of assets and
liabilities within the next financial year are discussed below:
1. Basis of Preparation (continued)
Genesis Put and Call Option
Genesis Put and Call Option agreements that allow the Group's equity partners
to require the Group to purchase a non-controlling interest are recorded in
the Consolidated Balance Sheet initially at the present value of the
redemption amount, in accordance with IAS 32 Financial Instruments:
Presentation. On initial recognition, the corresponding amount is recognised
against the put and call option reserve. Changes in the measurement of the
financial liability due to the unwinding of the discount or changes in the
amount that the Group could be required to pay are recognised in the
Consolidated Income Statement. If the contract expires without delivery, the
carrying amount of the financial liability is reclassified to equity,
otherwise the financial liability is derecognised for the amount settled.
The key significant option outstanding as at 2 August 2025 relates to the
Genesis Topco Inc ("Genesis"), which holds the Group's North American
business. The Genesis put and call liability at 2 August 2025 was £993m
(FY25: £831m).
Genesis Put and Call Option (continued)
The Group uses a third-party valuation expert to independently determine the
present value of the exercise price of the Genesis put and call options. The
approach uses a Monte-Carlo simulation model applying a geometric Brownian
motion to project the share price and an arithmetic Brownian motion for the
projection of EBITDA forecasts. See Note 8 for the full accounting policy.
The critical estimate used for the calculation used to value the put and call
option liability is the EBITDA forecasts and growth assumptions for future
period used.
2. Segmental Analysis
IFRS 8 'Operating Segments' requires the Group's segments to be identified on
the basis of internal reports about components of the Group that are regularly
reviewed by the 'CODM' ('Chief Operating Decision Maker') to allocate
resources to the segments and to assess their performance. The CODM is
considered to be the Chief Executive Officer of JD Sports Fashion Plc.
Information reported to the CODM is focused on the nature of the businesses
within the Group. The Group's reportable segments under IFRS 8 are JD,
Complementary Concepts and Sporting Goods and Outdoors. In accordance with
IFRS 8.12, we have aggregated several operating segments with similar economic
characteristics into each reporting segment and concluded that, in doing so,
the aggregation is still consistent with the core principles of IFRS 8.
When aggregating the operating segments into each reporting segment, we have
primarily taken into consideration:
- IFRS 8.12.a the nature of products or services
- IFRS 8.12.c the type or class of customer
- IFRS 8.12.d the methods used to distribute their products.
The CODM receives and reviews segmental operating profit. Certain central
administrative costs including Group Directors' salaries are included within
the Group's JD result. This is consistent with the results as reported to the
CODM. IFRS 8 requires disclosure of information regarding revenue from major
customers. The majority of the Group's revenue is derived from the retail of a
wide range of apparel, footwear and accessories to the general public.
As such, the disclosure of revenues from major customers is not appropriate.
Information regarding the Group's reportable segments for the 26 weeks to
2 August 2025 is shown below:
Income statement JD Complementary Sporting Goods Total
£m Concepts and Outdoors (unaudited)
£m £m £m
Revenue 3,674 1,567 699 5,940
Gross profit before adjusting items 1,811 733 309 2,853
Gross margin 49.3% 46.8% 44.2% 48.0 %
Operating costs before adjusting items 1,549 590 275 2,414
Operating profit before adjusting items 262 143 34 439
Operating margin before adjusting items 7.1 % 9.1 % 4.9 % 7.4 %
Net finance expense (60) (19) (9) (88)
Profit before tax and adjusting items 202 124 25 351
Assets and liabilities JD Complementary Sporting Goods Total
£m Concepts and Outdoors (unaudited)
£m £m £m
Inventories 1,146 749 399 2,294
Other segment information JD Complementary Sporting Goods Total
£m Concepts and Outdoors (unaudited)
£m £m £m
Capital expenditure:
Intangible assets (Software development) 8 2 3 13
Property, plant and equipment 155 42 17 214
Depreciation, amortisation and impairments:
Amortisation of intangible assets 14 20 1 35
Depreciation of property, plant and equipment 100 44 18 162
Depreciation of right-of-use assets 208 50 12 270
Information regarding the Group's reportable segments for the 26 weeks to
3 August 2024 is shown below:
Income statement JD Complementary Sporting Goods Total
£m Concepts and Outdoors (unaudited)
£m £m £m
Revenue 3,607 715 710 5,032
Gross profit before adjusting items (restated)(1) 1,802 334 313 2,449
Gross margin before adjusting items (restated)(1) 50.0% 46.7% 44.1% 48.6%
Operating costs before adjusting items (restated)(1) (1,479) (236) (283) (1,998)
Operating profit before adjusting items 323 98 30 451
Operating margin before adjusting items 9.0% 13.7% 4.2% 9.0%
Net finance expense (30) (7) (8) (45)
Profit before tax and adjusting items 293 91 22 406
(1) Please refer to Note 14 for further details of the restatement.
Assets and liabilities JD Complementary Sporting Goods Total
£m Concepts and Outdoors (unaudited)
£m £m £m
Inventories 1,052 572 390 2,014
2. Segmental Analysis (continued)
Other segment information JD Complementary Sporting Goods Total
£m Concepts and Outdoors (unaudited)
£m £m £m
Capital expenditure:
Intangible assets (Software development) 13 - - 13
Property, plant and equipment 194 27 10 231
Depreciation, amortisation and impairments:
Amortisation of intangible assets 27 12 5 44
Depreciation of property, plant and equipment 72 13 15 100
Depreciation of right-of-use assets 136 35 32 203
Impairment of non-current assets (adjusting items) 96 - - 96
Impairment of non-current assets (non-adjusting items) 1 - 4 5
Geographical Information
The following table provides analysis of the Group's revenue by geographical
market, irrespective of the origin of the goods/services.
Revenue 26 weeks to 26 weeks to
2 August 2025 3 August 2024
(unaudited) (unaudited)
£m £m
North America 2,318 1,754
Europe 1,921 1,547
UK 1,464 1,499
Asia Pacific 237 232
5,940 5,032
The revenue from any individual country, with the exception of the UK, US and
Spain, is not more than 10% of the Group's total revenue.
Revenue by channel
Revenue 26 weeks to 26 weeks to
2 August 2025 3 August 2024
(unaudited) (unaudited)
£m £m
Retail stores 4,728 3,925
Online 1,143 1,044
Other((1)) 69 63
5,940 5,032
(1) Other relates to revenue from leisure club memberships,
wholesale and commission sales.
Revenue by product type
Revenue 26 weeks to 26 weeks to
2 August 2025 3 August 2024
(unaudited) (unaudited)
£m £m
Footwear 3,657 3,009
Apparel 1,688 1,501
Accessories 372 295
Other((2)) 223 227
5,940 5,032
(2) Other relates to revenue from sales of outdoor living
equipment, delivery income and revenue from leisure club memberships.
3. Adjusting Items
The Group exercises judgement in assessing whether items should be classified
as adjusting items. This assessment covers the nature of the item, cause of
occurrence and scale of impact of that item on the reported performance. In
determining whether items should be presented as adjusting items, the Group
considers items that are significant because of either their size or their
nature which management believe would distort an understanding of earnings if
not adjusted. In order for an item to be presented as an adjusting item, it
should typically meet at least one of the following criteria:
- Impairments of tangible and intangible assets, investments and
loan receivables not recoverable
- Unusual in nature or outside the normal course of business (for
example, the non-cash movement in the present value of put and call options,
and foreign currency movements on non-trading intercompany balances)
- Items directly incurred as a result of either an acquisition, an
anticipated acquisition or a divestment, or arising from a major business
change or restructuring programme (including the amortisation of acquired
intangible assets, see below for further detail).
The separate reporting of items, which are presented as adjusting items within
the relevant category in the Consolidated Income Statement, helps provide an
indication of the Group's trading performance in the normal course of
business. The tax impact of these adjusting items is a tax credit of £13m
(HY25: £30m) as shown on the face of the Consolidated Income Statement.
The total charge for the period is £213m of which £7m is a cash outflow and
£206m is a non-cash charge.
Notes 26 weeks to 26 weeks to
2 August 3 August
2025 2024
(unaudited) (unaudited)
£m £m
Impairments of tangible and intangible assets and investments:
Impairments of tangible and intangible assets and investments 1 101
Items as a result of acquisitions, divestments, major business changes or
restructuring:
Divestment and restructuring - 13
Integration costs 7 -
Acquisition-related costs 7 22
Amortisation of acquired intangibles 35 23
Administrative expenses - Adjusting items 50 159
Items that are unusual in nature or outside the normal course of business:
Movement in present value of put and call options 8 163 121
Finance expenses - Adjusting items 163 121
Adjusting items 213 280
Integration costs
The integration costs of £7m are associated with the integration of the
Group's US business following the acquisition of Hibbett. This is a
continuation of a significant multi-year programme to create an integrated
platform for the nationwide growth of the JD Brand and Community fascias in
North America with an efficient supply chain and back office. We are expecting
this programme to deliver at least $25m annual savings over this time frame at
a one‑off cash cost of around 1x the savings delivered.
Acquisition-related costs
Acquisition-related costs include £3m of deferred consideration for the
acquisition of the 20% minority shareholding in Mainline Menswear Limited in
on 27 September 2024. This has been accounted for under IAS 19 as a service
cost. The remaining £4m are non cash costs of fair value uplifts on the
Hibbett acquisition.
Amortisation of acquired intangibles
Amortisation of acquired intangible assets totalled £35m.
Put and call option charge
The charge relates to a £163 million increase in put and call option
liabilities arising from the Genesis agreement. As set out in the FY25 Annual
Report, the shareholders' agreement was amended during the year to defer the
option exercise periods, resulting in the full liability being classified as
non-current. The valuation methodology and £1.5 billion cap remain unchanged.
4. Tax Expense
The total tax charge included in the Consolidated Income Statement consists of
current and deferred tax.
Current Income Tax
Current tax is the expected tax payable on taxable income for the financial
period, using the applicable enacted tax rates in each relevant jurisdiction.
Tax expense is recognised in the Consolidated Income Statement except to the
extent it relates to items recognised in the Consolidated Statement of
Comprehensive Income or directly in the Consolidated Statement of Changes in
Equity, in which case it is recognised in the relevant statement,
respectively.
Current tax 26 weeks to 26 weeks to
2 August
2025 3 August
(unaudited)
£m 2024
(unaudited)
£m
UK corporation tax at 25.0%/24.0% 64 98
Adjustment relating to prior periods - (1)
Total current tax charge 64 97
Deferred tax
Deferred tax (origination and reversal of temporary differences) 12 (23)
Adjustment relating to prior periods - -
Total deferred tax (credit)/charge 12 (23)
Income tax expense 76 74
5. Earnings per Ordinary Share
Basic and Adjusted Earnings per Ordinary Share
The calculation of basic earnings per ordinary share at 2 August 2025 is
based on the profit for the period attributable to equity holders of the
parent of £41m (HY25: £22m) and a weighted average number of ordinary
shares outstanding in issue during the 26 week period ended 2 August 2025 of
5,126,614,161 (HY25: 5,158,135,745).
As announced on the 9 April 2025, the Group commenced a share buyback
programme to repurchase the Group's own ordinary shares on the open market.
During the 6-month period ended 2 August 2025, the Group repurchased a total
of 121,730,000 ordinary shares, representing 2.4% of the issued share
capital as at the beginning of the period, at a total cost of £101m,
inclusive of transaction costs. The average price paid per share was £0.83.
The repurchased shares were held in treasury or cancelled as of 2 August 2025,
and the cost has been recognised as a deduction from equity in accordance
with IAS 32 Financial Instruments: Presentation. No gain or loss has been
recognised in the Income Statement in relation to these transactions. As at 2
August 2025, 79,897,460 shares were held in treasury at a cost of £66m.
Treasury shares are excluded from the below calculations, meaning earnings per
share has increased partly due to the reduction in total shares in issue
during the period. There have been no other transactions involving ordinary
shares or potential ordinary shares in the period or since the period end date
and the signing of these financial statements.
Adjusted basic earnings per ordinary share has been calculated based on the
profit for the period attributable to equity holders of the parent for each
financial period but excluding the post-tax effect of adjusting items. The
Directors consider that this gives a more useful measure of the trading
performance and profitability of the Group.
26 weeks to 26 weeks to 3 August 2024
2 August 2025
(unaudited) (unaudited)
£m
£m
Profit for the period attributable to equity holders of the parent 41 22
Adjusting items attributable to equity holders of the parent 206 275
Tax relating to adjusting items (11) (30)
Profit for the period attributable to equity holders of the parent excluding 236 267
adjusting items
millions millions
Weighted average number of ordinary shares at end of the period (basic) 5,127 5,158
Dilution - Effect of potentially dilutive share options and awards - 1
Weighted average number of ordinary shares at the end of the period (diluted) 5,127 5,159
Basic earnings per ordinary share 0.80p 0.42p
Diluted earnings per ordinary share 0.80p 0.42p
Adjusted basic earnings per ordinary share 4.60p 5.15p
Adjusted diluted earnings per ordinary share 4.60p 5.15p
6. Acquisitions
Business Combinations
The Group accounts for business combinations using the acquisition method when
control is transferred to the Group. The Group controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect the returns through its power over the
entity.
Costs related to the acquisition, other than those associated with the issue
of debt or equity securities, that the Group incurs in connection with a
business combination are expensed within adjusting items as incurred.
The consideration transferred in the acquisition is measured at fair value, as
are the identifiable net assets acquired. Any goodwill that arises is tested
annually for impairment; however, any resulting impairment will not be tax
deductible. The consideration transferred does not include amounts related
to the settlement of pre-existing relationships. Such amounts are generally
recognised in the Consolidated Income Statement.
Any contingent consideration is measured at fair value at the date of
acquisition. If an obligation to pay contingent consideration that meets the
definition of a financial instrument is classified as equity, then it is not
remeasured, and the settlement is accounted for within equity. Otherwise,
subsequent changes in the fair value of the contingent consideration are
recognised in the Consolidated Income Statement.
The valuation techniques used for measuring the fair value of material assets
acquired are as follows:
- Intangible assets (computer software) - The cost approach is used which
reflects the amount that would be required to currently replace the service
capacity of an asset (often referred to as current replacement cost). Under
the Group's accounting policy, directly attributable software development
costs in relation to the configuration and customisation of cloud computing
arrangements are only capitalised to the extent they give rise to an asset
controlled by the Group.
- Intangible assets (fascia names and brand names) - The relief from royalty
method considers the discounted estimated royalty payments that are expected
to be avoided as a result of the intangible assets being owned.
- Inventories - The fair value is determined based on the estimated selling
price in the ordinary course of business less the estimated costs of
completion and sale, and a reasonable profit margin based on the effort
required to sell the inventories.
- Leases - A right-of-use asset and lease liability are recognised, measured
as if the acquired lease were a new lease at the date of acquisition.
The fair value of the acquired leases is estimated by comparing the annual
rent to a normalised rent level based on a market-oriented occupancy rate. The
difference is calculated over the remaining lease term and discounted at the
estimated pre-tax discount rate, adjusting the value of the right‑of-use
asset recognised under IFRS 16 'Leases'. The lease liability recognised is
measured at the present value of the remaining lease payments, using a
discount rate determined in accordance with IFRS 16 at the date of
acquisition.
- Owned property - The cost approach considers the cost to replace the
existing property, less accrued depreciation, plus the fair value of the land.
The value of the properties is derived by adding the estimated value of the
land to the cost of constructing a reproduction or replacement for the
improvements and then subtracting the amount of depreciation.
- Plant and equipment - The depreciated replacement cost new valuation
approach is utilised, reflecting adjustments for physical deterioration as
well as functional and economic obsolescence.
Any excess of the cost of acquisition over the fair values of the identifiable
net assets acquired is recognised as goodwill. Any deficiency of the cost of
acquisition below the fair values of the identifiable net assets acquired
(discount on acquisition) is credited to the consolidated income statement in
the period of acquisition.
Current Period Acquisitions
In the current period to 2 August 2025, 3 new gyms were acquired for £2m
from Lifestyle Gyms and have since been converted into JD Gyms.
6. Acquisitions (continued)
Prior Period Acquisitions
Acquisition of Hibbett, Inc. (100%)
On 25 July 2024, the Group acquired, via its existing subsidiary Genesis
Holdings, Inc., 100% of the issued share capital of Hibbett, Inc. ('Hibbett')
for total cash consideration of $1,077m (£836m). The Genesis Holdings
Group has a material 20% non-controlling interest.
Headquartered in Birmingham, Alabama, Hibbett is a leading sports
fashion-inspired retailer with 1,179 stores, as of 25 July 2024, located in
communities in 36 states across the US. Hibbett has been serving customers for
more than 75 years with convenient locations, personalised customer service
and access to leading brands across footwear, apparel and accessories. The
acquisition expands on the Group's presence in the US market.
As part of the acquisition method of accounting, the assets and liabilities of
Hibbett have been converted from US generally accepted accounting principles
(GAAP) to IFRS Accounting Standards.
The table below sets out the final identifiable net assets attributable to the
acquisition of Hibbett as of the acquisition date and includes the effects
of adjustments on the acquisition date balance sheet made during the
measurement period and detailed below. There have been no subsequent
adjustments to the acquisition date accounting reported in our FY25 Annual
Report and accounts.
Book Value Measurement Final Fair Values
£m
adjustments
£m
£m
Acquiree's net assets at acquisition date:
Non-Current Assets
Intangible assets - fascia name 19 156 175
Intangible assets - other 7 - 7
Property, plant and equipment 140 43 183
Right of Use Assets 221 20 241
Other Assets 16 (11) 5
Current Assets
Inventories 292 (2) 290
Cash and cash equivalents 24 - 24
Trade and other receivables 15 (5) 10
Prepayments 16 (2) 14
Income Tax 9 - 9
Current Liabilities
Trade and other payables - current (142) (2) (144)
Lease Liability - current (53) 12 (41)
Interest bearing loans - current (36) - (36)
Non-Current Liabilities
Trade and other payables - non-current (3) - (3)
Lease Liability - non-current (203) 8 (195)
Deferred Tax Liability (4) (51) (55)
Net identifiable assets 318 166 484
Goodwill on acquisition 351
Total consideration 835
The excess of consideration paid over the fair value of the net assets on
acquisition of £351 million represents goodwill that reflects the market
position of the business, the assembled workforce, the potential future growth
opportunities from existing and new retail stores, and cost synergies across
our North American businesses. The goodwill has been allocated to the
Community operating segment which is in line with where the value is expected
to be recovered. The goodwill is not deductible for tax purposes at the
consolidated level.
6. Acquisitions (continued)
Acquisition of Groupe Courir S.A.S (100%)
On 26 November 2024, the Group acquired, via its existing subsidiary JD France
100% of the issued share capital of Groupe Courir S.A.S ('Courir') for total
cash consideration of €391.5 million (£326 million).
Courir is a market leader in sneakers in France, which is the largest sneaker
market in Europe, and this acquisition reinforces the Group's position within
Europe. Courir has 323 stores as of 26 November 2024, bannered as Courir
across France, Spain, Belgium, the Netherlands, Portugal and Luxembourg. In
addition, there are a further 36 stores which trade under franchise agreements
as Courir in North West Africa, Middle East and French overseas territories.
Further, there are three stores which trade as Naked, an elevated concept for
women's sneakers.
The table below sets out the identifiable net assets attributable to the
acquisition of Courir as of the acquisition date and includes the effects of
adjustments on the acquisition date balance sheet made during the measurement
period and detailed below. These provisional fair values will be finalised in
our FY26 annual report and accounts.
Book Value Measurement Provisional fair
adjustments
value at
£m
£m
26 November
2024
£m
Acquiree's net assets at acquisition date:
Non-Current Assets
Intangible assets - fascia name 49 39 88
Intangible assets - other 16 (15) 1
Legacy Goodwill 127 (127) -
Property, plant and equipment 22 9 31
Right of Use Assets 156 - 156
Other Non current Assets 6 - 6
Current Assets
Inventories 117 5 122
Trade and other receivables 18 - 18
Cash and cash equivalents 52 - 52
Deferred Tax Asset 5 (2) 3
Current Liabilities
Trade and other payables - current (122) - (122)
Lease liabilities - current (26) - (26)
Liabilities held-for-sale (7) - (7)
Non-Current Liabilities
Interest bearing loans - non-current (184) 19 (165)
Lease liabilities - non-current (125) (125)
Provision - non-current (7) - (7)
Deferred Tax Liability (1) (22) (23)
Net identifiable assets 96 (94) 2
Goodwill on acquisition 324
NCI - Naked -
Total consideration 326
The excess of consideration paid over the fair value of the net assets on
acquisition of £324 million represents goodwill that reflects the market
position of the business, the assembled workforce, the potential future growth
opportunities from existing and new retail stores. The goodwill is not
deductible for tax purposes at the consolidated level.
Prior Period Acquisitions - Acquisition of Non-Controlling Interests
Acquisition of the Non-Controlling Interest in Sport Zone Canaries (40%) and
JD Canaries (10%)
On 8 April 2024, JD Spain Sports Fashion 2010 SL acquired the 10% minority
shareholding in JD Canary Islands Sports SL, ('JD Canary') and SDSR - Sports
Division SR, S.A. ('Sport Zone Portugal') acquired the 40% minority
shareholding in Sport Zone Canarias (SL). Total consideration for both
shareholdings was €20m. The JD Canary acquisition aligns with the JD Brand
First strategy, whilst the Sport Zone Portugal acquisition promotes the
JD Complementary Concepts.
Acquisition of the Non-Controlling Interest in DTLR Villa LLC (1.155%)
On 15 July 2024, JD acquired 1.018% of the remaining 1.155% issued share
capital in its existing subsidiary DTLR Villa LLC for cash consideration of
$9m. On 19 July 2024 JD acquired the remaining 0.137% issued share capital of
DTLR Villa LLC for cash consideration of $1m. The Group now owns 100% of the
issued share capital of DTLR Villa LLC. In accordance with IFRS 10, the Group
had previously assessed and concluded that it controlled the subsidiary. As
the step-up acquisition in July 2024 does not result in a change of control,
this has been accounted for as an equity transaction.
6. Acquisitions (continued)
Acquisition of the Non-Controlling Interest in JD Gyms
On 28 October 2024, JD Sports Fashion plc acquired a further 2.5% minority
shareholding in JD Sports Gyms Limited. Total consideration was £5 million.
JD now owns 97.5% of JD Sports Gyms. As the step-up acquisition in October
2024 does not result in a change of control, this has been accounted for as an
equity transaction. Due to the step-up acquisition, the obligation to provide
services was deemed to no longer exist and the related liability of £4m was
subsequently derecognised in equity.
Acquisition of the Non-Controlling Interest in Mainline Menswear
On 27 September 2024, the Group acquired the 20% minority shareholding in
Mainline Menswear Limited for a total £17 million consideration, including
£9 million deferred consideration, which has been accounted for under IAS 19
as a service cost. JD now owns the full 100% shareholding in Mainline. As the
step-up acquisition in September 2024 does not result in a change of control,
this has been accounted for as an equity transaction.
Acquisition of the Trade and Assets of Simply Gyms
On 18 March 2024, JD Gyms acquired the trade and assets of four 'Simply Gym'
sites from Bay Leisure Limited for £3 million (of which £1 million was
deferred). The sites will be converted to JD Gyms under a phased conversion
programme.
7. Divestments
Current Period
On 24 April 2025, the group disposed of Wheelbase Lakeland Limited (77.5%
equity interest) for cash consideration of £2 million. The non-controlling
interest at disposal was £1 million. The gain on disposal, net of disposal
costs is £nil.
Prior Period Disposals
Applied Nutrition
The Group had an equity interest in a single associate, Applied Nutrition
Limited ('Applied Nutrition'). On 7 May 2021, the Group acquired a 32%
ownership interest in, and had significant influence over, Applied Nutrition.
Applied Nutrition is a sports nutrition brand which operates via wholesale
activities and a trading website.
On 24 October 2024, Applied Nutrition undertook an initial public offering and
admitted its entire issued ordinary share capital, consisting of 250,000,000
shares, to the London Stock Exchange plc's main market for listed securities.
The Group disposed of 21.58% of its shareholding in Applied Nutrition on 24
October 2024 for net proceeds of £73 million. At 1 February 2025 the Group
holds 9.78% ownership in Applied Nutrition.
On disposal of its 21.58% shareholding, the Group ceased to hold significant
influence over Applied Nutrition and has de-recognised its investment
in associate. The remaining 9.78% is accounted for as a financial asset under
IFRS 9. The fair value of the retained interest was £34 million.
A gain of £51 million arising from the disposal and gain on revaluation of
the retained investment on the date of classification amounting to £24
million is recognised in profit and loss as an adjusting item included in
'Divestment and restructuring' line.
Non-Significant Divestments
On 16 October 2024, the group disposed of Total Swimming Holdings Limited (60%
equity interest) including its subsidiaries. The total consideration of £11
million. The non-controlling interest at disposal was £1.4 million. The gain
on disposal, net of disposal costs is £14 million.
On 20 November 2024, the Group disposed of its 49% equity interest
shareholding in a joint venture, PT JD Sports Fashion Indonesia ('JD
Indonesia'), for cash consideration of £6 million. The loss on disposal net
of disposal costs is £1 million.
On 28 July 2024, the Group disposed of Gym King Limited (40% equity interest)
a fixed asset investment in a joint venture for cash consideration of
£2 million. The loss on disposal net of disposal costs is £1 million.
On 7 March 2024, the Group disposed of Bodytone Limited (50.1% equity
interest) for cash consideration of €2 million (£2 million).
The non-controlling interest at disposal was £3.6 million. The loss on
disposal net of disposal costs is £1 million.
The total net gain on divestments of £11 million is offset with an £8
million loss on divestments and restructuring of non-core group companies from
the prior year.
The total gain on non-significant divestments amounts to £3 million.
On 28 July 2024, the Group disposed of Gym King Limited (40% equity interest)
a fixed asset investment in a joint venture for cash consideration of £2.0
million.
On 7 March 2024, the Group disposed of Bodytone Limited (50.1% equity
interest) for cash consideration of €2.4m.
8. Put and Call Option Liabilities
Put and call options are in place over all or part of the remaining
non-controlling interest shareholding in various subsidiaries. The Group
recognises put and call options over non-controlling interests in its
subsidiary undertakings as a liability in the Consolidated Statement of
Financial Position at the present value of the estimated exercise price of the
put and call options. The only material put and call option remaining at
2 August 2025 is Genesis at £993m (FY25: £831m).
The Group has used a third-party valuation expert to estimate the present
value of the Group's material put and call option liabilities (Genesis) using
a Monte-Carlo simulation model, applying a geometric Brownian motion to
project the share price and an arithmetic Brownian motion for the projection
of EBITDA. The option formula and multiple are usually stated in the option
agreement, allowing the strike price to be calculated from the simulated
EBITDA; however, in the absence of a specified formula or multiple, the Group
estimates this based on current evidence in the Mergers and Acquisitions
market and the Group's past experience of multiples paid for similar
businesses. Upon initial recognition of put and call options, a corresponding
entry is made to Other Equity (put and call option reserve), and for
subsequent changes on remeasurement of the liability the corresponding entry
is made to adjusting items in the Consolidated Income Statement.
8. Put and Call Option Liabilities (continued)
Inputs to the Monte-Carlo simulation models
The Group used the Board approved 5-year plan to estimate profit and cash flow
forecasts for future periods..
In estimating the present value of the Group's material put and call option
liabilities, the key inputs to the Monte-Carlo simulation models are:
- The EBITDA forecasts and growth assumptions for future periods, including
forecast net cash/debt and forecast capital expenditure, working capital
movements and taxation.
- The EBITDA, which is projected using an Arithmetic Brownian Motion using
EBITDA drift. The drift for each time period is estimated from forecast EBITDA
and its standard deviation is estimated from historical EBITDA data.
- The risk-free discount rates, reflecting the current market assessment of
the time value of money, used to discount the purchase price (subject to the
option pricing cap as defined in the shareholder agreement) to the present
value.
Genesis option
During the period there has been a trigger event, being the modification of
the Genesis option agreement, which has been accounted for as a non
substantial modification based on qualitative factors (ie. the core elements
of the agreement remain unchanged). The £162m movement in the fair value of
the Genesis option has been recognised through adjusting items in the income
statement. The underlying movement with constant currency is £232m; with
£69m due to movements in foreign exchange rates.
Other options
Within Other Options the largest value option is Cosmos £26m (HY25: £24m).
During the period there has been a trigger event, being that the Wheelbase
option has lapsed, due to the Group's disposal of the entire shareholding.
Furthermore there has been a c.£1m foreign exchange valuation movement on the
Cosmos option held. The remaining options are valued in house, and total £1m
(HY25: 6m).
Genesis Topco Inc Other Total
('Genesis')
£m
Liability
£m
(unaudited)
£m
At 3 February 2024 763 46 809
Options lapsed and disposed during the period - (2) (2)
Options bought out - (7) (7)
Increase/(decrease) in the present value of the existing option liability 127 (6) 121
At 3 August 2024 890 31 921
Genesis Topco Inc Other Total
('Genesis')
£m
Liability
£m
(unaudited)
£m
At 1 February 2025 831 26 857
Increase in the present value of the existing option liability 162 1 163
At 2 August 2025 993 27 1,020
9. Dividends
Dividend distribution to the Company's shareholders is recognised as a
liability in the Group Financial Statements in the period in which it is
approved.
After the reporting date, the following dividend was proposed by the Directors
and will be payable to all shareholders on the register at 31 October 2025.
The dividends were not provided for at the reporting date.
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Interim dividend declared but not paid in respect of the period of 0.33 pence 17 17
(2025: 0.33 pence) per qualifying ordinary share paid in respect of current
period
17 17
Dividends on Issued Ordinary Share Capital
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Final dividend of 0.67 pence (2025: 0.60 pence) per qualifying ordinary share 34 31
paid in respect of prior period, but not recognised as a liability in that
period
34 31
10. Reconciliation of Profit After Taxation to Cash Flows from Operating
Activities
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Cash flows from operating activities
Profit for the period 62 52
Adjustments for:
Income tax expense 75 74
Finance expenses (non-adjusting) 94 60
Finance expenses (adjusting) 163 121
Finance income (non-adjusting) (6) (15)
Depreciation and amortisation of non-current assets (non-adjusting) 433 324
Depreciation and amortisation of non-current assets (adjusting) 35 23
Share based payment charge - 1
Loss on disposal of non-current assets - (3)
Loss on FX forward contracts 21 1
Impairment of goodwill and fascia names (adjusting) - 1
Impairment of other intangibles and non-current assets (adjusting) - 94
Other non-cash items (non adjusting) (3) -
Other non-cash items (adjusting) 8 20
Share of profit of equity-accounted investees (net of tax) - (3)
Profit before working capital changes 882 750
(Increase) in inventories (314) (137)
Decrease/(increase) in trade and other receivables (134) (30)
(Decrease)/increase in trade and other payables 136 (72)
Cash generated from operations 570 512
11. Analysis of Net Debt
Net debt consists of cash and cash equivalents together with other borrowings
from bank loans and overdrafts, other loans, loan notes, lease liabilities and
other similar hire purchase contracts:
52 weeks ended On acquisition Cash flow FX Lease 26 weeks ended
1 February
& disposal of
£m
Movement
additions,
2 August
2025 (unaudited)
subsidiaries,
£m
terminations,
2025 (unaudited)
£m
associates
modifications &
£m
and NCIs
reassessments
£m
£m
Cash and cash equivalents 731 1 (188) (13) - 531
Overdrafts (36) - 7 - - (29)
Cash and cash equivalents for the purposes of the Consolidated Statement of 695 1 (181) (13) - 502
Cash Flows
Bank loans (643) - 29 (13) - (627)
Net cash / (debt) before lease liabilities 52 1 (152) (26) - (125)
Lease liabilities (3,059) - 291 11 (298) (3,055)
Total liabilities from financing activities (3,702) - 320 (2) (298) (3,682)
Net debt (3,007) 1 139 (15) (298) (3,180)
53 weeks ended On acquisition Cash flow FX Held-for-sale reclassification Lease 26 weeks ended
3 February
& disposal of
£m
Movement
2024 (unaudited)
subsidiaries,
£m additions, 3 August
£m
associates
and NCIs terminations, 2024 (unaudited)
£m
modifications & £m
reassessments
£m
Cash and cash equivalents 1,153 24 (230) (9) 9 - 947
Overdrafts (60) - (5) (2) - - (67)
Cash and cash equivalents held-for-sale 9 - - - (9) - -
Cash and cash equivalents for the purposes of the Consolidated Statement of 1,102 24 (235) (11) - - 880
Cash Flows
Bank loans (70) (29) (760) 20 - - (839)
Net cash before lease liabilities 1,032 (5) (995) 9 - - 41
Lease liabilities (2,484) (236) 189 6 - (356) (2,881)
Total liabilities from financing activities (2,554) (265) (571) 26 - (356) (3,720)
Net debt (1,452) (241) (806) 15 - (356) (2,840)
12. Contingent Liabilities
The activities of the Group are overseen by a number of regulators around the
world and, whilst the Group strives to ensure full compliance with all its
regulatory obligations, periodic reviews are inevitable which may result in a
financial penalty. If the risk of a financial penalty arising from one of
these reviews is more than remote but not probable or cannot be measured
reliably then the Group will disclose this matter as a contingent liability.
If the risk of a financial penalty is considered probable and can be measured
reliably then the Group would make a provision for this matter.
13. Post Balance Sheet Events
Share Buyback
As announced on 27 August 2025, the company has announced a second share
buyback programme to repurchase ordinary shares with a market value of up to
£100 million, to increase the total buyback to £200 million. The purpose of
the programme is to reduce share capital and, accordingly, the shares
repurchased will be subsequently cancelled or held in treasury. We expect to
commence the programme post the announcement of our H1 results on 24
September.
14. Prior Period Adjustment
Profit and Loss Reclassification
As disclosed in the Group's audited financial statements for the 53 week
period ended 3 February 2024, the Group reviewed the accounting treatment for
supplier rebates related to marketing initiative support. As a result of this
review, it was concluded that such rebates should be recognised within cost of
sales rather than within selling and distribution expenses, in order to better
reflect the nature of the related arrangements.
Accordingly, the Group restated the relevant comparative figures as at 28
January 2023, reclassifying £38 million from selling and distribution
expenses to cost of sales.
The comparative information for the 26 weeks ended 3 August 2024 presented in
these interim financial statements has been updated to reflect this
reclassification, consistent with the presentation adopted in the latest
audited financial statements.
This reclassification affects only the presentation within the income
statement and has no impact on previously reported net profit, total
comprehensive income, or equity.
The amount reclassified for the 26 weeks ended 3 August 2024 comparative
period is £21 million.
Alternative Performance Measures
The Directors measure the performance of the Group based on a range of
financial measures, including measures not recognised by UK-adopted
International Financial Reporting Standards. These Alternative Performance
Measures may not be directly comparable with other companies' Alternative
Performance Measures and the Directors do not intend these to be a substitute
for, or superior to, IFRS measures. The Directors believe that these
Alternative Performance Measures assist in providing additional useful
information on the trading performance of the Group. Alternative Performance
Measures are also used to enhance the comparability of information between
reporting periods, by excluding adjusting items.
Adjusted Basic Earnings per Share
The calculation of basic earnings per share is detailed in Note 5 to the
financial statements. Adjusted basic earnings per ordinary share has been
based on the profit for the period attributable to equity holders of the
parent for each financial period but excluding the post-tax effect of certain
adjusting items. A reconciliation between basic earnings per share and
adjusted basic earnings per share is shown below:
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Basic earnings per share per Note 5 0.80 p 0.42 p
Adjusting items 4.01 p 5.30 p
Tax relating to adjusting items (0.21) p
(0.57) p
Adjusted basic earnings per ordinary share 4.60 p 5.15 p
Adjusted EPS at constant currency would have been 5.03p in the comparative
period and is therefore down 8.5% in the current period. This measure is
presented to eliminate the impact of foreign exchange translation and provide
a view of earnings per share that is more reflective of the Group's underlying
performance. Management believes that presenting Adjusted EPS on a constant
currency basis provides investors with useful additional information by
enabling a like-for-like comparison between reporting periods, without the
distortion caused by movements in exchange rates.
Adjusting Items
The Group exercises judgement in assessing whether items should be classified
as adjusting items. The separate reporting of items, which are presented as
adjusting items within the relevant category in the Consolidated Income
Statement, helps provide an indication of the Group's trading performance in
the normal course of business. An explanation as to why individual items have
been classified as adjusting is given in Note 3 to the interim financial
statements.
Alternative Performance Measures excluding adjusting items are intended to
enhance the comparability of information between reporting periods and
to help to provide an indication of the Group's trading performance.
Capital Expenditure
Capital Expenditure is the measure of total cash invested each period to
maintain or build new retail fascias, logistics infrastructure, or technology
assets. This investment is in the ongoing business and is invested to deliver
growth in organic sales or improvements in gross profit or operating profit.
This Alternative Performance Measure is therefore useful to understand the
investment the company is making in its ongoing assets for which a return on
investment is expected in the future.
This measure excludes other items within net cash used in investing activities
in the cashflow statement as these are not related to investments in
the ongoing business, but to acquisitions, investments or disposals of
subsidiaries or joint ventures, proceeds of sale of non-current assets or
interest received. This APM was updated during FY25 to reflect the capital
expenditure associated with intangibles and property, plant and equipment
only.
The table below details the cashflow expenditure on capital investment as
detailed in the Consolidated Statement of Cash Flows:
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Acquisition of intangibles (software development) 11 14
Acquisition of property, plant and equipment 205 231
Total capital expenditure 216 245
An alternative presentation of this is as follows:
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Stores & gyms 169 160
Supply chain infrastructure 24 61
Technology and other 23 24
Total capital expenditure 216 245
Alternative Performance Measures (continued)
Effective Tax Rate Before Adjusting Items
Being the adjusted tax charge as a percentage of the adjusted profit before
tax as outlined in the Consolidated Income Statement.
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Income tax expense before adjusting items 89 104
Profit before tax and adjusting items 351 406
Effective tax rate before adjusting items 25.4 % 25.6 %
Income Tax Expense Before Adjusting Items
Income tax expense before the impact of adjusting items as shown in the
Consolidated Income Statement and used in the Adjusted Effective Rate of
Taxation measure shown above.
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Income tax expense 76 74
Effect of adjusting items on income tax 13 30
Income tax expense before adjusting items 89 104
Operating Cashflow Net of Lease Repayments
Operating cashflow net of lease repayments is the movement in cash and cash
equivalents period on period excluding the impact of working capital, capital
expenditure, income taxes, acquisition of subsidiaries or non-controlling
interests, cash proceeds from disposals, purchase of equity investments,
dividends paid to equity shareholders and non-controlling interests. The Group
considers this a useful measure as it provides a proxy for cash EBITDA,
thereby offering a clearer view of the underlying recurring cash generation of
the business before discretionary or non-operational cash flows.
Free Cash Flow
Free cashflow is the movement in cash and cash equivalents period on period
excluding the impact of acquisition of subsidiaries or non-controlling
interests, cash proceeds from disposals, purchase of equity investments,
dividends paid to equity shareholders and non-controlling interests.
This performance measure gives insight into the cash generated from the annual
operations of the business including capital expenditure reinvested in the
business and excludes cashflows related to dividends, funding and acquisitions
and disposals as these decisions are outside the normal course of business
operations.
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Profit before tax 138 126
Add back impairments of intangible assets and investments - 96
Add back other non-cash adjusting items 171 140
Depreciation and amortisation of non-current assets 467 347
Repayment of lease liabilities (230) (189)
Operating cashflow net of lease repayments 546 520
Change in working capital (312) (239)
Capital expenditure (216) (245)
Income taxes paid (96) (132)
Other 10 (7)
Free Cash Flow (68) (103)
Repayment of interest-bearing loans and borrowings (37) (42)
Drawdown of interest-bearing loans and borrowings 66 802
Payment of arrangement fees on new financing (7) -
Acquisition of subsidiaries and NCI - (841)
Cash consideration of disposals 1 4
Equity dividends paid (34) (31)
Share buyback (101) -
Change in cash and cash equivalents ((1)) (180) (211)
Cash and cash equivalents at the beginning of the period ((1)) 695 1,102
Change in net cash and cash equivalents (180) (211)
Foreign exchange (losses)/gains on cash and cash equivalents (13) (11)
Cash and cash equivalents at the end of the period ((1)) 502 880
(1) Cash and cash equivalents equates to the cash and cash
equivalents presented in the Consolidated Statement of Cash Flows (cash and
cash equivalents and overdrafts).
Alternative Performance Measures (continued)
Net Debt Before Lease Liabilities
Net debt before lease liabilities consists of cash and cash equivalents
together with other borrowings from bank loans and overdrafts but before
lease liabilities.
Net debt before lease liabilities is a measure of the Group's net indebtedness
that provides an indicator of the overall strength of the Consolidated
Statement of Financial Position. It is also a single measure that can be used
to assess the combined effect of the Group's cash position and its
indebtedness. Net cash before lease liabilities is considered to be an
alternative performance measure as it is not defined in IFRS. The most
directly comparable IFRS measure is the aggregate of borrowings and lease
liabilities (current and non-current) and cash and cash equivalents.
A reconciliation of these measures with net cash can be found in Note 11 to
these interim financial statements.
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Net debt (3,180) (2,840)
Lease liabilities 3,055 2,881
Net (debt) / cash before lease liabilities (125) 41
Net Financial Expense on Financial Assets Before Adjusting Items
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited)
£m
Net finance expenses (251) (166)
Adjusting items (in finance expense) 163 121
Net finance expense before adjusting items (88) (45)
Operating Profit before adjusting items after lease interest
The table below shows a reconciliation of statutory operating profit for the
26 week period ended 2 August 2025 to the alternative performance measure,
operating profit before adjusting items after lease interest for the same 26
week period ended 3 August 2025.
Operating profit before adjusting items after lease interest IFRS 16 Lease Interest Adjusting items Operating Profit for the period
26 weeks to 26 weeks to 26 weeks to 26 weeks to
2 August 2025 2 August 2025 2 August 2025 2 August 2025
(unaudited) (unaudited) (unaudited) (unaudited)
£m £m £m £m
JD
JD UK 110 11 (3) 118
JD North America 67 14 (7) 74
JD Asia Pacific 23 4 - 27
JD Europe 16 15 (1) 30
JD Total 216 44 (11) 249
Complementary Concepts
Community 113 11 (26) 98
Complementary 15 5 (7) 13
Complementary Concepts Total 128 16 (33) 111
Sporting Goods & Outdoor
Outdoor 1 2 (2) 1
Sporting Goods 24 8 (4) 28
Sporting Goods & Outdoor Total 25 10 (6) 29
TOTAL GROUP 369 70 (50) 389
Alternative Performance Measures (continued)
The table below shows a reconciliation of statutory operating profit for the
26 week period ended 3 August 2024 to the alternative performance measure,
operating profit before adjusting items after lease interest for 26 week
period ended 2 August 2025.
Operating profit / (loss) before adjusting items after lease interest IFRS 16 Lease Interest Adjusting items Operating Profit / (Loss) for the period
26 weeks to 26 weeks to 26 weeks to 26 weeks to
3 August 2024 3 August 2024 3 August 2024 3 August 2024
(unaudited) (unaudited) (unaudited) (unaudited)
£m £m £m £m
JD
JD UK 130 10 (126) 14
JD North America 105 10 (12) 103
JD Asia Pacific 25 3 1 29
JD Europe 26 14 - 40
JD Total 286 37 (137) 186
Complementary Concepts
Community 90 5 (13) 82
Complementary 2 1 (2) 1
Complementary Concepts Total 92.0 6.0 (15.0) 83
Sporting Goods & Outdoor
Outdoor 2 2 (1) 3
Sporting Goods 22 4 (6) 20
Sporting Goods & Outdoor Total 24 6 (7) 23
TOTAL GROUP 402 49 (159) 292
Like-For-Like Sales Growth
The definition of Like-For-Like ("LFL") sales growth is outlined in the
Organic Sales Growth definition below.
Organic Sales Growth
One of the key measures of performance is the growth in sales between
reporting periods excluding the impact of currency, acquisitions and
disposals. This is called 'Organic Sales Growth'
It is calculated at constant currency using the average exchange rate of the
current period applied to sales from the current and prior periods. Organic
Sales Growth is calculated by removing the impact of all sales in the prior
period from disposals made in the prior period, current period and assets held
for sale at the end of the current period. This gives a new prior period base
to calculate Organic Sales Growth rates from.
Organic Sales Growth % in the current year then excludes any sales from
acquisitions in the 12 months since acquisition, and any sales from businesses
disposed of in the current period or held for sale at the end of the current
period. This isolates Organic Sales Growth to the percentage change in the
year-on-year sales growth from existing stores. Organic Sales Growth is split
into Like-For-Like ("LFL") sales from existing stores or sales from net new
space and store conversions which are not LFL period on period (non LFL).
Online like-for-like sales are calculated based on revenue from websites that
have been operational for at least 12 months prior to the period under review.
Sales from new country websites launched within the period are excluded from
the like-for-like calculation, as are sales in prior period from websites that
have since been permanently closed. Orders placed online and fulfilled through
click & collect or ship-from-store are classified as online sales, as the
customer journey begins online, and therefore follow the same like-for-like
policy.
These metrics of Organic Sales Growth and its two component parts, LFL and
non-LFL, enables the performance of the retail stores to be measured on a
consistent year-on-year basis and is a common term used in the industry.
Alternative Performance Measures (continued)
The table below shows a reconciliation of organic Sales Growth for each
operating segment and sub-segment for the unaudited 26 week period ended 3
August 2024 and reconciled to the 26 week period ended 2 August 2025. The
analysis is split over two tables.
Revenue Impact of H125 Revenue at average H126 rates Disposals Revenue Acquisitions Organic sales Revenue
26 weeks to retranslating at average H126 rebased H126 growth 26 weeks to
3 August 2024 H126 rates H126 H126 2 August 2025
(unaudited) (unaudited)
£m £m £m £m £m £m £m £m
JD UK 1,235 - 1,235 (7) 1,228 - (14) 1,214
JD Europe 981 (4) 977 - 977 - 117 1,094
JD North America 1,158 (45) 1,113 - 1,113 - 15 1,128
JD Asia Pacific 233 (9) 224 - 224 - 14 238
Total JD 3,607 (58) 3,549 (7) 3,542 - 132 3,674
Community 596 (23) 573 - 573 579 37 1,189
Complementary 119 (1) 118 - 118 289 (30) 378
Complementary Concepts 715 (24) 691 - 691 868 7 1,567
Sporting Goods 447 (2) 445 (1) 444 1 5 450
Outdoor 263 - 263 (3) 260 - (11) 249
Sporting Goods & Outdoor 710 (2) 708 (4) 704 1 (6) 699
TOTAL GROUP 5,032 (84) 4,948 (11) 4,937 869 133 5,940
Revenue LFL Non LFL LFL Non-LFL Organic sales
growth
26 weeks to H126 H126
2 August 2025
(unaudited)
Continued £m £m £m % % %
JD UK 1,214 (36) 21 (2.9) % +1.7 % (1.2) %
JD Europe 1,094 (8) 125 (0.8) % +12.8 % +12.0 %
JD North America 1,128 (58) 73 (5.2) % +6.6 % +1.4 %
JD Asia Pacific 238 (4) 20 (2.4) % +8.4 % +6.0 %
Total JD 3,674 (106) 239 (3.0) % +6.7 % +3.7 %
Community 1,189 (7) 44 (1.2) % +7.7 % +6.5 %
Complementary 378 (10) (20) (8.7) % (16.8) % (25.4) %
Complementary Concepts 1,567 (17) 24 (2.4) % +3.5 % +1.1 %
Sporting Goods 450 13 (8) +3.0 % (1.8) % +1.2 %
Outdoor 249 (13) 2 (5.1) % +0.9 % (4.2) %
Sporting Goods & Outdoor 699 - (6) - % (0.8) % (0.8) %
TOTAL GROUP 5,940 (123) 257 (2.5) % +5.2 % +2.7 %
Sales Growth from Net New Space
The definition of sales growth from net new space is outlined in the Organic
Sales Growth definition above.
Alternative Performance Measures (continued)
Sales Growth
One of the key measures of performance is the growth in sales between
reporting periods excluding the impact of currency. The figures below are
extracted from the Organic Sales Growth table.
Sales Growth
£m
Revenue 26 weeks to 3 August 2024 5,032
Impact of retranslating at HY 2026 currency rate (84)
4,948
Revenue 26 weeks to 2 August 2025 5,940
Sales Growth 20%
Operating Costs Before Adjusting Items
Being operating costs before adjusting items included within operating costs.
26 weeks to 26 weeks to
2 August 2025
(unaudited) 3 August 2024
£m
(unaudited) (restated)(1)
£m
Selling and distribution expenses (2,144) (1,790)
Administrative expenses before adjusting items (290) (223)
Share of profits of equity-accounted investees - 3
Other operating income 20 12
Operating costs before adjusting items (2,414) (1,998)
Adjusting items within administrative expenses (50) (159)
Operating costs (2,464) (2,157)
(1) Please refer to Note 14 for further details of the restatement.
Operating Margin Before Adjusting Items
A reconciliation between operating margin and adjusting items can be found in
the Summary Consolidated Income Statement.
Gross Margin Excluding the Impact of Acquisitions
Gross margin excluding the impact of acquisitions is an alternative
performance measure used by management to assess the underlying profitability
of the Group's operations by removing the effect of acquisitions completed
during the reporting period. This measure facilitates comparison with prior
periods and better reflects organic performance.
Operating Margin Before Adjusting Items after interest on lease liabilities
In the FY25 report we updated our APM metric on operating profit to now
include interest on lease liabilities so that both the depreciation and
interest costs of our leases under IFRS 16 are included in this APM. This
gives a more accurate view of our operating performance (in line with how
operating profit would have traditionally been reported and understood with
the full cost of servicing a property portfolio included in operating
performance).
A reconciliation between operating margin before adjusting items after
interest on lease liabilities can be found in the Summary Consolidated Income
Statement on a 26 Week Basis above.
Foreign Exchange Rates
Period Closing rates Average rates
26 weeks to 2 August 2025 26 weeks to 3 August 2024 26 weeks to 2 August 2025 26 weeks to 3 August 2024
USD 1.33 1.28 1.31 1.27
EUR 1.15 1.17 1.16 1.17
Directors' Responsibility Statement
We confirm that to the best of our knowledge:
- the condensed set of financial statements has been prepared in accordance
with IAS 34 'Interim Financial Reporting' as adopted for use in the UK; and
- the interim management report includes a fair review of the information
required by:
a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being
an indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed set of
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes
in the related party transactions described in the last annual report that
could do so.
On behalf of the Board
Régis Schultz
Chief Executive Officer
Hollinsbrook Way
Pilsworth
Bury
Lancashire
24 September 2025
Disclaimer
This announcement contains certain forward-looking statements with respect to
the financial condition, results, operations and businesses of JD Sports
Fashion Plc. These statements and forecasts involve risk and uncertainty
because they relate to events and depend on circumstances that will occur
in the future. There are a number of factors that could cause actual results
or developments to differ materially from those expressed or implied by these
forward-looking statements and forecasts.
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