JD Sports maintains full-year profit expectations despite mixed Q4 performance

JD Sports Fashion has released its fourth quarter trading update, reporting a resilient performance during the critical peak trading period despite a volatile consumer environment. The Group achieved organic sales growth of 1.4 percent for the nine-week period ending 3 January 2026, while like-for-like (LFL) sales saw a slight decline of 1.8 percent, remaining consistent with the trend observed in the previous quarter.

Based on these year-to-date results, the company expects its full-year profit before tax and adjusting items (PBTAI) to align with current market expectations of approximately 849 million pounds (1,141 million dollars).

Regional performance dynamics

The Group's largest market, North America, showed a marked improvement with LFL sales returning to growth at 1.5 percent and organic growth reaching 5.3 percent. This rebound was largely driven by a strong Black Friday performance and successful new product launches. Conversely, European and UK markets faced more significant challenges, with LFL sales declining 3.4 percent and 5.3 percent respectively. While peak events like Black Friday and Christmas saw high engagement, demand softened in the first half of December due to a cautious consumer backdrop.

Product performance remained mixed across categories; apparel continued to show resilience, supported by strong demand in outerwear and women’s ranges. However, the footwear category experienced expected softness due to end-of-cycle product line headwinds, though the running segment maintained positive momentum. To remain competitive, JD implemented controlled price investments, particularly in its online channels, which is expected to result in a full-year gross margin approximately 50 basis points lower year-on-year.

Financial position and outlook

JD continues to maintain a strong financial position, on track to generate free cash flow of approximately 400 million pounds for FY26. The company has also completed 200 million pounds in share buybacks, demonstrating a commitment to shareholder returns.

Looking ahead to FY27, CEO Régis Schultz expressed caution, anticipating a period of muted market growth due to a weak spending outlook for the Group's core demographic and early-stage innovation pipelines from major brand partners.