JD Sports reports profit decline and shifts focus toward emerging brands

JD Sports Fashion reported weaker sales and a decline in pre-tax profits, which fell by 20% to £282 million for the six months ending August 1. The retailer attributed the downturn to a “tough global consumer backdrop” and cost-of-living pressures, particularly affecting its core demographic of consumers aged 16 to 24. Sales reached £5.9 billion, representing a 0.7% decrease compared to the previous year, with declines noted in North America (1.7%) and the UK (1.6%).

In response to shifting market trends and headwinds in the footwear sector, CEO Régis Schultz stated that the company is “not waiting” for its largest brand partner, Nike, to recover. Instead, JD Sports is aggressively diversifying its assortment to include performance running gear and brands such as On and Salomon. Schultz emphasized that the company’s merchandising remains flexible to match customer appetite and current trends.

Despite the sales slump, CFO Dominic Platt expressed optimism regarding Nike’s recovery, noting that the brand remains highly popular and that specific performance ranges are resonating well with customers. While the company has reduced its store count by over 100 since last year, it reported growth of more than 10% in the Asia Pacific region.