JD Sports Fashion has issued a stark warning to shoppers and investors, highlighting a significant problem on the rise across the UK: the impact of increasing unemployment on consumer spending.
Profits Set to Fall Amid Economic Pressures
The sportswear retail giant cautioned that its annual pre-tax profits are expected to land within the lower end of market expectations, which currently stand between £853 million and £888 million. This forecast signals a steep decline from the £923 million reported a year earlier.
Chief Executive Regis Schultz pointed to recent weak macroeconomic and consumer indicators in the company's key markets as the reason for taking a pragmatic view of the full-year profit outturn for 2025/26.
Sales Decline Across Key Markets
The group reported a continued sales decline across its most important regions. In the UK, like-for-like sales fell by 3.3% in the third quarter to November 1. While this was an improvement on the 6.1% drop seen in the previous three months, it still reflects ongoing challenges.
Overall group sales were down 1.7% during the quarter, with North America seeing a 1.7% fall and European sales declining by 1.1%. The Asia Pacific region was the only bright spot, recording a 3.9% increase in sales.
Multiple Factors Squeezing Consumer Demand
JD Sports specifically highlighted pressures on its core customer demographic, including rising unemployment levels and near-term volatility in consumer sentiment. The company noted it has operated throughout the year amid macroeconomic volatility, strained consumer finances, and evolving brand product cycles.
Unseasonably warm autumn weather also played a role, particularly hitting sales of clothing and outdoor ranges in September. The retailer continues to face difficult trading conditions for shoes.
Despite these challenges, the company pointed to some positive developments, including the continued success of its new flagship store at the Trafford Centre in Manchester. JD Sports emphasised that its multi-brand and cross-category approach, along with its agility in responding to changing customer trends, are helping to offset known consumer and industry headwinds.
