JD Sports navigates weaker consumer confidence in Q3, adjusts outlook

JD Sports Fashion plc reported delivered stable trading despite persistent macroeconomic pressures and softer consumer confidence across key markets in the third quarter. Total Group sales for the 13 weeks to 1 November rose 8.1 percent at constant exchange rates, including contributions from recent acquisitions, while organic sales increased 2.4 percent.

However, commenting on the outlook, CEO Régis Schultz cautioned that the company has seen “incrementally weaker macro and consumer indicators” in recent weeks, including rising unemployment among JD’s core demographic. With the crucial Q4 trading period ahead, JD now expects full-year 2025/26 profit before tax and adjusting items to land at the lower end of market expectations. The latest consensus forecasts FY26 profit before tax and adjusting items at 871 million pounds, with estimates ranging between 853 million pounds and 888 million pounds.

Like-for-like sales declined 1.7 percent, though trends improved in North America—where LFL performance strengthened to a 1.7 percent decline from a 2.1 percent drop in Q2—and remained resilient in Europe. Asia Pacific posted the strongest gains with LFL growth of 3.9 percent and organic growth of 13.3 percent, while the UK saw a modest improvement in organic performance compared with the prior quarter.

Schultz said JD continued to make progress on its strategic objectives “against what remains a tough market backdrop,” highlighting strong apparel sales and ongoing momentum in the running category within footwear, even as several key product lines reached the end of their cycle. “Our multi-brand and cross-category approach, and agility in responding to changing customer trends, are helping us to offset known consumer and industry headwinds,” he said. Schultz added that JD is managing costs and cash with discipline, supported by early synergy benefits from U.S. integrations.

The period marked continued investment in digital infrastructure and supply chain optimisation. JD rolled out its new e-commerce platform in Italy, following earlier launches in North America and Asia Pacific, with early results described as promising. The Group also activated automation at its Heerlen distribution centre in the Netherlands, a key milestone expected to strengthen European store replenishment and enhance long-term efficiency. Gross margin declined 40 basis points year-on-year (30 basis points excluding acquisitions), largely due to controlled price investments in online channels.