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Investing.com -- JD Sports Fashion (LON:JD) said on Wednesday it expects full-year profit to be in line with market expectations after reporting resilient peak-quarter trading and an improvement in sales momentum in its largest market, sending its shares up more than 2%.
The British sportswear retailer said profit before tax and adjusting items for the 2025-26 financial year is expected to match current market expectations, with company-compiled consensus at £849 million.
“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,” Régis Schultz, CEO of JD Sports Fashion said in a statement.
Group organic sales rose 1.4% in the nine weeks to Jan. 3, while like-for-like sales fell 1.8%. JD Sports said like-for-like trends improved in North America compared with the previous quarter, offsetting continued declines in Europe and the UK.
North America, which represented 39% of fourth-quarter-to-date sales, recorded like-for-like growth of 1.5% and organic sales growth of 5.3%. Excluding standalone Finish Line stores, like-for-like sales 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 cited resilient footwear demand and strong online performance during the holiday period.
Europe, accounting for 32% of sales, posted a like-for-like decline of 3.4%, while organic sales rose 0.9%. The UK, which made up 25% of sales, saw like-for-like sales fall 5.3% and organic sales decline 4.8%, reflecting a weaker consumer backdrop and higher promotional activity.
JD Sports said it expects full-year gross margin to be about 50 basis points lower year-on-year, driven mainly by controlled price investments, particularly online. As of Nov. 1, 2025, group gross margin was 60 basis points lower than a year earlier.
The company also reiterated it is on track to generate free cash flow of about £400 million in FY26, compared with £339 million the previous year, supported by cost control and inventory management.