JD Sports Fashion (LSE:JD.) said on Wednesday that it expects full-year profit to come in line with market expectations, after reporting resilient trading over the peak period and a pickup in sales momentum in North America, its largest market. The update lifted the retailer’s shares by more than 2%.
The group said profit before tax and adjusting items for the 2025–26 financial year should align with current market forecasts, with company-compiled consensus standing at £849m.
“Overall sales during the peak period were in line with our expectations, against a volatile consumer backdrop. Black Friday saw strong customer engagement across all regions, but demand softened in the first half of December, particularly in Europe and the UK,” said Régis Schultz, chief executive of JD Sports Fashion, in a statement.
Group organic sales increased 1.4% in the nine weeks to 3 January, while like-for-like sales declined 1.8%. JD Sports noted that like-for-like trends in North America improved versus the previous quarter, helping to offset ongoing weakness in Europe and the UK.
North America accounted for 39% of fourth-quarter-to-date sales and delivered like-for-like growth of 1.5%, alongside organic sales growth of 5.3%. Excluding standalone Finish Line stores, like-for-like sales in the region rose 4.1%.
“JD’s brand awareness continues to grow in the US and, building on this momentum, we have decided to increase our marketing initiatives in North America in the coming year to accelerate our growth plans in the region,” Schultz added.
The company pointed to resilient demand for footwear and a strong online performance over the holiday period. In Europe, which represented 32% of sales, like-for-like revenue fell 3.4%, although organic sales edged up 0.9%. The UK, accounting for 25% of sales, saw like-for-like sales decline 5.3% and organic sales drop 4.8%, reflecting weaker consumer conditions and higher levels of promotional activity.
JD Sports said it expects its full-year gross margin to be around 50 basis points lower year on year, mainly due to controlled price investments, particularly online. As of 1 November 2025, group gross margin was already 60 basis points below the prior year.
The retailer also reiterated that it remains on track to generate around £400m of free cash flow in FY26, up from £339m the previous year, supported by ongoing cost discipline and inventory management.
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