JD Sports warns of future volatility despite Q3 sales rise

JD Sports has seen total Q3 sales rise by 8.1%, but has warned that volatility and rising unemployment may hit its full-year profits. In the UK, like-for-like sales were down by 3.3% amid a “tough consumer backdrop and unseasonably warmer weather” in September, which hit apparel sales and the group’s Outdoors businesses.

In its latest trading update, the group said recent investments in its e-commerce platforms were starting to show “measurable benefits” and would form the basis of its next phase of digital and omnichannel growth. 

It added that work to streamline its global supply chain continued, noting the launch of automation at its distribution centre in Heerlen in the Netherlands, a “key milestone” in its European plans.

Looking ahead, JD Sports warned of macroeconomic volatility, pressure on household budgets and shifting product cycles, adding it is keeping a focus on medium-term priorities and “strict” financial and operating discipline. 

It also noted “incrementally weaker” recent economic indicators in its main markets and highlighted pressure on its core customer base, including rising unemployment levels and volatile consumer sentiment.

In light of this, JD Sports expects profit before tax and adjusting items for FY26 to be at the lower end of market expectations.

Régis Schultz, CEO of JD Sports Fashion, said: “We continued to make good progress with our strategic objectives in the quarter, against what remains a tough market backdrop. 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. 

“We are also controlling our costs and cash well through our focus on operating and financial discipline.”

He added: “We are navigating a year of volatility in external factors with disciplined execution, reflected in a solid Q3. In the near term, as we enter an important trading period, we are mindful of recent weak macro and consumer indicators in our key markets. 

“These lead us to take a pragmatic approach for our FY26 profit outturn. 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.”