Solid Christmas sales, but under pressure in Europe and the UK: The British sports fashion retailer weathered a difficult consumer environment in the final quarter with stable growth and a clear digital strategy. The outlook for fiscal year 2027 remains cautious, but the group continues to focus on efficiency, online growth, and operational strength.
JD Sports Fashion recorded organic sales growth of 1.4 percent in the fourth quarter of 2025/26, while like-for-like sales (LFL) declined by 1.8 percent in the same period – virtually unchanged from the previous quarter. The gross margin for the full year is expected to be around 50 basis points below the previous year, mainly due to targeted pricing measures in the online business to support sales in a volatile market environment.
Asia ahead – Europe and UK under pressure
Regionally, Asia Pacific posted the strongest growth in the quarter with organic sales up 9.6 percent and like-for-like growth of 2.8 percent. North America followed with 5.3 percent organic growth. The British sneaker and streetwear specialist cites successful new products in the running and retro basketball segments as reasons for this. The online business also performed strongly, supported by targeted marketing and strategic price adjustments. In contrast, Europe and the United Kingdom fell short of expectations: LFL sales in Europe fell by 3.4 percent and in the UK by as much as 5.3 percent, both impacted by weak December sales and continued consumer restraint.
“Black Friday saw strong customer engagement across all regions, but demand softened in the first half of December, particularly in Europe and the UK.” JD Sports CEO Régis Schultz
Cautious outlook for 2027 – focus on efficiency and digital growth
Europe’s third-largest sports retailer is cautiously optimistic about the current year. According to current analyst estimates, JD Sports expects adjusted pre-tax profits (PBTAI) of around £849 million (€993m) for the 2026 financial year. Management is cautious about the 2027 financial year, saying that customer spending remains subdued and new products from major brand partners – especially in the footwear segment – are still a long way off.
Nevertheless, according to its trading update, JD Sports intends to continue growing, focusing on more marketing, digital offerings, artificial intelligence, and more efficient stores. At the same time, it plans to cut costs without compromising its core business. The goal remains to outperform the competition, even in a difficult market environment: “Looking ahead, we remain confident that our agile, multi-brand, cross-category approach will enable us to outperform the market, and deliver strong cash flows and enhanced shareholder returns,” says CEO Schultz, underlining the group’s confidence despite ongoing market challenges.
