Shares for JD Sports Fashion dipped over 6 percent on Thursday after the retailer warned on profits heading into the end of the year.
The U.K.-based company reported group revenue declined 1.7 percent in the third quarter to 2.95 billion pounds.
By region, revenue in North America in Q3 dipped 1.7 percent to 1.08 billion pounds, Europe declined 1.1 percent to 1.03 billion pounds, and the U.K. dropped 3.3 percent to 718 million pounds. The company’s revenue in the Asia Pacific region grew 3.9 percent in the quarter to 124 million pounds.
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JD Sports chief executive officer Régis Schultz said that the company “continued to make good progress” on its strategic objectives in the quarter, against what remains a tough market backdrop.
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“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,” Schultz noted. “We are also controlling our costs and cash well through our focus on operating and financial discipline.”
The CEO noted that by category, its apparel range is “resonating well” with customers, which provides the company with opportunity for growth in underserved key markets. In footwear, notwithstanding known end-of-cycle product headwinds, the running segment remains a key trend for JD’s customers. “We have a strong product line-up in this area going into our busiest trading period,” Schultz said.
Looking closer at JD Sports’ North American business, the company noted that its back-to-school performance was “in-line” with its expectations. The retailer also reported “strong online performance,” supported by new e-commerce platforms, better online ranges, focused marketing, and controlled price investments particularly on Finishline.com.
As for the rest of the year, JD Sports noted that it remains “mindful” of incrementally weaker macro and consumer indicators in recent weeks. As such, the company said it is taking a “pragmatic approach” to the fiscal year 2026 outlook ahead of the peak trading period in Q4 and anticipates fiscal year 2026 profit before tax and adjusting items to be within the lower end of current market expectations.
“We are navigating a year of volatility in external factors with disciplined execution, reflected in a solid Q3,” Schultz added. “We remain confident in the overall positive trajectory for our industry and JD Group over the medium term, and this is well reflected in our commitment to enhanced shareholder returns.”