JD Sports trading update: can the sportswear retailer revive growth?

JD Sports trading update: can the sportswear retailer revive growth?

JD Sports Fashion heads into Thursday's trading update at an important juncture for the business. The sportswear retailer has delivered strong headline sales growth through acquisitions, but underlying trading remains challenging and investors are increasingly looking for evidence that chief executive Régis Schultz's turnaround strategy is beginning to translate into stronger organic growth and improved profitability.

The company will publish its second-quarter trading performance on Thursday 20 August, with investors expected to focus particularly on like-for-like sales, margins and whether management maintains its full-year profit guidance.

The backdrop is demanding. JD's FY26 revenue rose 10.5% to £12.66 billion, or 11.7% at constant exchange rates, but organic sales growth was only 2.1%, while like-for-like revenue declined 2.1%. Profit before tax and adjusting items fell 7.7% to £852 million, while operating profit before adjusting items declined 5.4% to £886 million. Free cash flow, however, was a bright spot, increasing 36.3% to £462 million.

The contrast between sales growth and weaker underlying profitability is central to the investment case. Acquisitions including Hibbett and Courir have significantly increased the group's scale, but JD now needs its existing estate to generate stronger organic growth.

You can track JD Sports' share price and trade around the update through spread betting or CFD trading, or invest for the longer term through IG Invest or our share dealing service.

What happened in the first quarter?

JD's most recent trading figures provided little evidence of an immediate turnaround. Like-for-like sales fell 2.3% in the first quarter to 25 April, with regional performance particularly weak in the UK and Europe.

UK like-for-like sales declined 4.0%, while Europe fell 4.2%. North America was down a more modest 0.6%, while Asia Pacific was the standout performer, with like-for-like sales increasing 5.2%. Apparel also outperformed footwear.

The regional divergence will therefore be important on Thursday. Investors will want to see whether the weakness in the UK and Europe has stabilised and whether North America, which now represents around 40% of group revenue, can return to growth.

The performance of the US business is particularly important following JD's acquisitions of Hibbett, DTLR and Shoe Palace. These deals have transformed the group's geographic exposure but have also increased the importance of delivering synergies and improving margins across the enlarged portfolio.

Profit guidance is the key issue

JD warned in May that FY27 would be another difficult year for profits. It guided to profit before tax and adjusting items of between £750 million and £850 million, compared with £852 million in FY26.

The unusually wide range reflects considerable uncertainty surrounding consumer demand and the broader sportswear market. Management said it expected muted market growth, while also highlighting the potential impact of geopolitical tensions, energy and fuel costs and input-cost inflation.

The current analyst consensus, compiled by LSEG Data & Analytics from 18 analysts as of 17 August, is towards the lower-middle part of that range. Analysts expect FY27 profit before tax and adjusting items of £781 million, alongside revenue of £12.71 billion.

Most rate the company’s shares as a ‘hold’ but the average mean price target nonetheless sits at 104.98p, about 16% above current levels (as of 17 August 2026).

TipRanks has a ‘7 Neutral’ Smart Score for JD Sports and also rates the sports-fashion retail company as a ‘hold.’ 

Thursday's update could have a significant influence on the shares. A performance that gives management confidence of achieving the upper end of its guidance range could be well received. Conversely, evidence that sales remain weak or that margins are deteriorating could increase expectations of another downgrade.

Analysts expect another year of weak like-for-like sales

The consensus figures underline the challenge facing JD.

Analysts currently expect FY27 organic sales growth of just 0.8%, with like-for-like sales forecast to decline 1.7%. Gross margin is expected to fall by a further 30 basis points.

The outlook becomes more encouraging further out. Consensus currently sees organic sales growth accelerating to 2.8% in FY28 and 3.3% in FY29, while like-for-like sales are expected to return to positive territory in FY28.

Profit before tax and adjusting items is forecast to rise from £781 million in FY27 to £827 million in FY28 and £884 million in FY29. Free cash flow is expected to increase from £472 million this financial year to £482 million in FD28 and £529 million in FY29.

This suggests the market is not necessarily questioning JD's long-term business model. Instead, investors are waiting for evidence that the current period of weak demand and margin pressure is temporary.

Nike remains a major swing factor

The relationship with major sportswear brands will also be closely watched.

Nike products account for around 45% of JD's sales, making the US sportswear giant's product innovation and trading performance particularly important to the retailer. Reuters noted that a lack of innovation from Nike had contributed to pressure on JD's customer proposition.

JD has been attempting to diversify its brand mix and reduce reliance on individual suppliers, while strengthening relationships with brands such as Adidas and New Balance.

For investors, a healthier product pipeline could therefore provide an important catalyst. If new footwear and apparel launches stimulate demand, JD could potentially regain market share without relying as heavily on promotions.

Consumer spending remains a concern

JD's core customer base is relatively young and, in many markets, more exposed to pressure on disposable incomes.

That makes the company particularly sensitive to employment trends, household bills and consumer confidence. Management warned in May that geopolitical uncertainty could increase energy and fuel costs across its store and logistics networks and potentially feed into pricing and consumer demand.

This is one reason Thursday's sales figures could be more important than the headline revenue number. Investors need to establish whether JD is achieving growth because customers are spending more or because the group is opening more stores and benefiting from acquisitions.

The latter has been a significant feature of recent growth.

Turnaround strategy faces a credibility test

The trading update also comes against a backdrop of boardroom turbulence.

Former chairman Andy Higginson stepped down in April following reports of disagreement over the future direction of the business and Schultz's leadership. Peter Agnefjäll, the former Ikea chief executive, subsequently became chairman. Schultz retains the backing of JD's majority shareholder, Pentland Group.

That makes Thursday's update particularly important for management credibility.

Schultz has been pursuing a strategy centred on improving the customer proposition, integrating digital and physical retail, optimising the store estate, expanding the brand portfolio and improving operational efficiency. The strategy has yet to produce convincing organic sales growth, however.

A sustained improvement in like-for-like sales would therefore provide an important indication that the strategy is beginning to work.

Strong cash generation provides some support

One of the more positive aspects of JD's recent financial performance has been cash generation.

Free cash flow increased to £462 million in FY26, up 36.3%, despite lower profits. Net debt including lease liabilities fell by approximately £200 million to £2.8 billion.

The company also has a £200 million share buyback programme, providing an additional source of shareholder support.

The balance sheet therefore gives JD some flexibility while it works through the current period of subdued demand. However, investors are likely to place greater emphasis on earnings growth if the share price is to sustain a meaningful recovery.

JD Sports share price outlook

JD Sports shares have recovered since May 2026, having gained around 5% year-to-date, but remain well below their longer-term highs.

JD Sports weekly candlestick chart

The shares have therefore already priced in a significant amount of investor caution. Having said that, while the July low at 80.56p holds, the May-to-August uptrend is deemed to stay intact.

A rise above the 95.86p current August peak may lead to the October 2025 high at 106.20p being revisited. For such a bullish breakout to remain likely, the 22 July low at 84.34p needs to underpin, though.

JD Sports daily candlestick chart

A fall through the early August low at 87.38p and the 55-day simple moving average (SMA) at 87.33p may lead to the late July low at 84.34p being retested. Were it to give way, the short-term technical outlook would change from being neutral to bearish with the early July low and 200-day simple moving average (SMA) at 80.66-to-80.56p representing possible downside targets.

What investors should watch on Thursday

The most important signals from the trading update are likely to be:

• Like-for-like sales: particularly whether the UK and European declines have narrowed
• North America: evidence that the Hibbett, DTLR and Shoe Palace businesses are generating stronger organic growth
• Gross margin: whether promotional activity is increasing and putting further pressure on profitability
• FY27 guidance: whether management retains its £750 million-£850 million profit range and where it expects to land within it
• Cash flow: confirmation that the business remains on track to improve free cash generation
• Product innovation: evidence that new launches from Nike, Adidas, New Balance and other brands are stimulating demand
• Management confidence: any indication that the current weakness is temporary rather than structural

How to invest in JD Sports shares

1. Do your research on JD Sports, Thursday's trading update and the key metrics to watch
2. Download IG Invest or open a share dealing account with us
3. Search for JD Sports Fashion (JD.) in our platform or app
4. Choose the number of shares or value of money you'd like to invest
5. Place your trade