REG - JD Sports Fashion - Q4 2025/26 TRADING UPDATE

JD Sports FashionAnnouncement

Today 07:00

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RNS Number : 6806P  JD Sports Fashion PLC  21 January 2026

 

Q4 2025/26 TRADING UPDATE

Resilient peak trading against a tough consumer backdrop;

expect full year profit in line with current market expectations

 

Sales performance by region:

 

                 Q4 to-date: 9 weeks to 3 January       YTD: 48 weeks to 3 January
                 Like-for-like((1))  Organic((1))       Like-for-like((1))  Organic((1))
 North America*  +1.5%               +5.3%              (1.5)%              +3.6%
 Europe          (3.4)%              +0.9%              (1.5)%              +4.0%
 UK              (5.3)%              (4.8)%             (4.0)%              (2.7)%
 Asia Pacific    +2.8%               +9.6%              +0.5%               +8.7%
 Group           (1.8)%              +1.4%              (2.1)%              +2.2%

* North America excluding Finish Line LFL sales: Q4 to-date: +4.1% and YTD:
+1.6%. Refer to appendix 1 for sales by segment

Headlines:

·      Group Q4 to-date organic sales growth +1.4%. Like-for-like (LFL)
sales of -1.8%, in line with Q3 (Q3: -1.7%)

·      Improved LFL sales trend in our largest market, North America (vs
Q3: -1.7%); offset by weaker LFL trends in Europe and the UK (vs Q3: -1.1% and
-3.3% respectively)

·      Continued resilience in apparel sales reflecting strength of
product range; softness in footwear as expected given end-of-cycle product
line headwinds, despite positive momentum in running

·      Maintaining trading disciplines, with controlled price
investments in the period (particularly in online) to stay
connected with consumer dynamics and support volumes. Anticipate FY26 gross
margin % for the Group to be c.50bps lower YoY

·      Staying focused on delivery against strategic objectives;
roll-out of new e-commerce platforms in Europe and UK set to commence in 2026
following successful implementations in the US and Italy, and automation
ramping up at Heerlen distribution centre for JD Europe store replenishment

·      Costs and cash being well controlled, with US integration
synergies continuing to flow through

·      Expect FY26 profit before tax and adjusting items (PBTAI) to be
in line with current market expectations((2,3))

·      On track to generate free cash flow of c.£400m in FY26;
completed £200m of share buybacks

 

Régis Schultz, CEO of JD Sports Fashion plc:

"Overall sales during the peak period were in line with our expectations,
against a volatile consumer backdrop. Black Friday saw strong customer
engagement across all regions, but demand softened in the first half of
December, particularly in Europe and the UK. We responded decisively in the
final weeks of the period by choosing to make targeted price investments, and
we saw improved sales in the immediate run-up to Christmas Day and the period
after, demonstrating the strong customer appeal of JD and its complementary
fascias, in a challenging market. I'd like to thank all our colleagues for
their continued hard work and commitment during a critical trading period for
the Group.

"We were pleased to see a marked improvement in our like-for-like sales trend
in North America, our largest market, where we returned to growth and
delivered further market share gains, supported by disciplined execution of
our trading plan. JD's brand awareness continues to grow in the US and,
building on this momentum, we have decided to increase our marketing
initiatives in North America in the coming year to accelerate our growth plans
in the region.

"Operationally, we continue to exercise strong cost and cash control, and
expect to exit the financial year with a higher-quality inventory position.
Our strategic initiatives are delivering strong progress across the business:
we are optimising our supply chain, continuing to upgrade our online
proposition through the ongoing re‑platforming of our e‑commerce channels,
and accelerating our digital transformation through the roll‑out of our
agentic AI‑driven commerce capabilities. Together, these actions position us
well to navigate a fast‑changing retail landscape.

"Looking ahead, we remain confident that our agile, multi-brand,
cross-category approach will enable us to outperform the market, and deliver
strong cash flows and enhanced shareholder returns. For FY26, we expect full
year profit before tax and adjusting items to be in line with current market
expectations, and free cash flow of c.£400m, underpinned by disciplined
execution and a strong balance sheet."

Q4 TO-DATE Performance highlights:

North America (39% of Q4 to-date sales): LFL +1.5% and organic sales growth
+5.3%

·      Excluding standalone Finish Line stores, North America LFL +4.1%;
supported by a good Black Friday, our peak holiday season performance, and our
successful delivery of new product launches

·      Resilient performance in footwear, driven by continued momentum
in the running category and strong demand in new retro basketball product
launches, partially offset by softness in end-of-cycle product lines

·      Strong online performance across all key fascias, supported by
better online ranges, focused marketing, and controlled price investments
particularly on finishline.com

·      Conversion to JD of the Finish Line fascia (183 standalone stores
remaining) on track, where market-driven promotional intensity remains higher
than normal in the short term

Europe (32% of Q4 to-date sales): LFL -3.4% and organic sales growth +0.9%

·      Sales trends impacted by a cautious consumer environment, with
higher promotional participation around Black Friday and the peak holiday
season. Trading in Germany remained challenging, with weaker early‑December
sales in France, Spain and Italy prior to improved trends in the final weeks
of the period

·      Resilient performance in apparel, supported by stronger product
offer and demand in outerwear. Notwithstanding tough comparatives, especially
in end-of-cycle product lines, footwear performance reflected event-driven
demand and continued momentum in the running category

·      Strong online performance supported by ongoing momentum in
'ship-from-store' sales and controlled price investments made in the online
offer earlier this financial year

United Kingdom (25% of Q4 to-date sales): LFL -5.3% and organic sales growth
-4.8%

·      Weaker sales trend versus Q3 against a volatile consumer
backdrop, with resilient Black Friday and peak holiday season event-driven
demand more than offset by weakness in the first half of December

·      Apparel sales supported by good momentum in women's product
ranges and outerwear. Continued softness in footwear driven by end-of-cycle
footwear product lines, partially offset by sales of running lines

·      Online business (higher proportion of sales mix versus other
regions) remained impacted by market-driven promotions due to short-term
footwear cycle dynamics; resilient store LFL supported by good conversion
despite lower footfall

Asia Pacific (4% of Q4 to-date sales): LFL +2.8% and organic sales growth
+9.6%

·      Continued LFL growth, despite tougher prior year comparatives,
driven by a good performance across footwear and apparel, and strong online
sales growth

Group gross margin % MOVEMENT:

·      We anticipate the full year (FY26) gross margin % for the Group
to be approximately 50bps lower YoY, largely driven by controlled price
investments, mainly in the online offer. As a reminder, for the nine months
ended 1 November 2025, gross margin % for the Group was 60bps lower YoY

·      Inventory levels continue to be managed effectively, and we
expect to exit the financial year with a higher-quality inventory position YoY

 

FY26 GUIDANCE and early thoughts on fy27:

Based on our YTD performance and current indicators, we expect FY26 profit
before tax and adjusting items (PBTAI) to be in line with current market
expectations((2,3)), and we are today initiating free cash flow guidance with
an expectation of c.£400m((4)) in FY26 (FY25: £339m).

In our Strategy Update in April 2025 we outlined our view that the global
sportswear market would likely grow at 2-3% per annum, on average, over the
medium term. Looking ahead to FY27, based on the facts and indicators
available to us today, in recognition of (1) the weak spending outlook for our
core customer demographic, and (2) the early stages of the innovation pipeline
of our major brand partners (particularly in footwear), we currently
anticipate a period of muted market growth in FY27.

Much remains within our control to enable us to outperform the market. In
FY27:

·      We are accelerating initiatives across marketing, ranging,
digital, data and loyalty, AI, and store optimisation to further strengthen
our customer proposition;

·      We will maintain our core trading disciplines, but will continue
to implement controlled price investments (which we expect will be weighted
more towards H127) in order to stay connected with the short-term market and
consumer dynamics described above;

·      We will continue our sharp focus on cost efficiency and
productivity to support operating margin expansion over the medium term,
particularly in North America and Europe; and

·      We expect the Group to continue generating significant free cash
flow, supplemented by disciplined capex and working capital management. This
underpins our commitment to continue delivering significant cash returns to
shareholders.

Further details will be provided at our FY26 results on 7 May 2026.

 

APPENDIX 1: SALES BY SEGMENT

                               Q4 to-date: 9 weeks to 3 January       YTD: 48 weeks to 3 January
                               Like-for-like((1))  Organic((1))       Like-for-like((1))  Organic((1))
 JD*                           (2.8)%              +1.2%              (2.8)%              +3.0%
 Complementary Concepts        +1.2%               +2.8%              (0.7)%              +1.0%
 Sporting Goods & Outdoor      (1.6)%              (0.7)%             (0.4)%              (0.5)%
 Group                         (1.8)%              +1.4%              (2.1)%              +2.2%

* JD excluding Finish Line LFL sales: Q4 to-date: (2.0)% and YTD: (1.5)%

 

Footnotes

((1)) Like-for-like (LFL) and organic sales growth numbers stated at constant
FX rates. Please refer to page 252 (within 'Alternative Performance Measures')
of JD's Annual Report & Accounts 2025 for the full definitions of LFL and
organic sales growth

((2)) According to Company-compiled data as of 16 January 2026, the current
consensus of 16 sell-side analyst expectations for FY26 PBTAI is £849m

((3)) Guidance assumes current exchange rates. Average exchange rates for the
48 weeks to 3 January 2026 (YTD) were GBP-USD of 1.31 and GBP-EUR of 1.17

((4)) Free cash flow is stated before dividends, share buybacks, debt
financing, acquisitions and disposals, and operating cash flows related to
adjusting items

 

Embargoed until 7am GMT, 21 January 2026

 

 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

 

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.

 

Financial calendar

There is no management call today. The next scheduled events are:

 

7 May 2026: FY 2025/26 results (including a Q1 2026/27 trading update for a
stub period)

21 July 2026: Annual General Meeting 2026

20 August 2026: Q2 2026/27 trading statement

23 September 2026: H1 2026/27 results

19 November 2026: Q3 2026/27 trading statement

 

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 and Communities. JD is a constituent of the FTSE 100 index,
with 4,865 stores across 36 countries as of 3 January 2026.

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