JD Sports Fashion stays on course with organic growth in Q2

Backed by organic growth in North America and Asia, the Manchester-based company JD Sports Fashion posted moderate sales growth in Q2 FY2025/26. Declines on a comparable basis in Europe and the UK domestic market dampened the overall picture. The gross margin remained slightly below the previous year’s level. The British sports and lifestyle retailer’s consolidated sales rose by 2.2 percent to £3.11 billion (€3.66bn) in Q2 (to Aug. 2), driven by an organic growth rate of 2.2 percent. However, like-for-like sales declined by 3.0 percent.

US and Asia grow, UK falls behind

North America, which accounts for 36 percent of quarterly sales, grew organically by 4.8 percent. Although like-for-like sales fell by 2.3 percent, delayed product launches, strong demand for apparel and improved online performance supported the business, according to CEO Régis Schultz. In Europe, comparable store sales fell by 1.1 percent, while organic growth was 5.4 percent. The UK remained weak, with LFL sales falling by 6.1 percent and organic sales down 4.5 percent. “In both Europe and the UK, we were annualizing tough comparators from last year’s Euro soccer tournament but still saw a good underlying performance in apparel and from newer footwear lines,” emphasized Schultz. Euro 2024 would have boosted demand for replica jerseys in particular. The Asia-Pacific region was the growth driver for JD Sports: sales grew organically by 9.3 percent, while LFL remained virtually stable (+0.3%). JD did not provide any specific details in the report regarding the strong growth in the Asia-Pacific region.

JD Fascia dominates segment business

By segment, JD Fascia generated the largest share of sales in the second quarter with £1.97 billion (€2.32bn). Organic sales grew by 2.8 percent. Complementary Concepts recorded an increase of 3.6 percent to £755 million (€880m), while the Sporting Goods & Outdoor segment performed weaker with a decline of 1.7 percent to £383 million (€445m).

The group also remained on track for organic growth in segment revenue in the first half of the year. JD Fascia generated £3.67 billion (€4.33bn, +3.7%), Complementary Concepts £1.57 billion (€1.85bn, +1.0%), while Sporting Goods & Outdoor declined slightly to £699 million (€825m, -0.8%). In total, first-half sales amounted to £5.94 billion (€6.99bn). JD Sports will present its full half-year results on September 24.

Targeted price measures weigh on margins

At group level, gross margin declined slightly in the first half of the year. Excluding the acquired chains Hibbett and Courir, it fell by 40 basis points, and by 60 basis points including acquisitions. JD explained the decline as a result of targeted pricing measures in its online business, aimed at remaining competitive. According to the company, inventories were within the expected range and would “continue to be managed effectively.”

CFO Dominic Platt added: “We are investing in our pricing in a controlled manner, particularly online, to increase reach and conversion – without losing sight of profitability.”

JD maintains forecast and launches new buyback

Despite the challenges, JD Sports Fashion confirmed its annual forecast. For the 2025/26 financial year, the group expects earnings before taxes and special items to be in line with current market expectations (consensus: £885m respectively €1.04bn). The potential indirect impact of US tariff policy remains uncertain and is being further examined by management together with brand partners.

To strengthen shareholder returns, the FTSE 100 group announced a further £100 million (€118m) share buyback program, following the completion of a program of the same size in July. In the same month, the company also secured a new five-year £1 billion (€1.18bn) credit facility and a three-year $700 million loan. This underscores JD Sports’ ambition to continue gaining market share even in a challenging market environment.