JD Sports Earnings Slip As North America Weakens

JD Sports earnings showed a first-half profit decline and weaker North American sales for the 26 weeks ended 1 August 2026, yet the company left its full-year FY2026/27 guidance unchanged in a HY27 results statement published 23 September 2026.

First-Half Results and Sales

JD Sports Fashion plc reported adjusted profit before tax and adjusting items of £282 million for the half, down 19.7% from a year earlier but modestly above analysts’ expectations. Revenue fell 0.7% at reported exchange rates to £5.9 billion. Group like-for-like sales declined 2.8% for the half, with organic sales down 0.7%. In the second quarter, like-for-like sales dropped 3.1%, including a 6.8% decline in North America.

Gross margin was 46.8%, down 20 basis points year on year but better than the roughly 50-basis-point decline analysts had anticipated. This margin resilience helped the company exceed forecasts and supported management’s decision to maintain the full-year outlook. Operating profit before adjusting items and after interest on lease liabilities fell about 20% year on year to £294 million.

Statutory profit before tax rose to £241 million from £138 million a year earlier, reflecting a smaller options-related charge tied to the U.S. business. This statutory figure is not directly comparable with the adjusted profit.

Guidance, Cash Returns, and Expansion

JD Sports maintained its FY2026/27 guidance for profit before tax and adjusting items between £700 million and £800 million, and free cash flow of £460 million to £520 million, holding the reduced range announced in August. Management linked the cash-flow outlook to working-capital efficiency and inventory management.

Net cash before lease liabilities improved to £168 million at the half-year end, reversing from net debt of £125 million a year earlier. The company returned £260 million to shareholders through dividends and buybacks over the past 12 months. The interim dividend rose 21% to 0.40 pence per share, and the group began the second £100 million tranche of a planned £200 million share buyback on 3 August 2026.

JD Sports announced an expansion into Mexico through a deal with Axo, marking a milestone in its international growth strategy. The group operates more than 4,800 stores across 51 countries.

Management described the trading environment as affected by consumer cost-of-living pressures, footwear product-cycle headwinds, and a highly promotional market. The combination of maintained guidance, margin resilience, and continued capital returns suggests management is relying on working-capital improvements and margin stability to meet the FY2026/27 plan.