Based on year-to-date (YTD) performance and prevailing indicators, JD Sports expects FY26 profit before tax and adjusting items (PBTAI) to be in line with current market expectations, JD Sports said in a press release.
JD Sports Fashion has issued FY26 guidance, initiating free cash flow guidance of around £400 million (~$536 million), up from £339 million (~$455 million) in FY25, while expecting profit before tax to meet market expectations.
Looking to FY27, the retailer anticipates muted market growth amid weaker consumer spending and limited footwear innovation.
Q4 showed modest organic growth.
In its April 2025 strategy update, the company had projected the global sportswear market to grow at an average rate of 23 per cent per annum over the medium term. Looking ahead to FY27, it now anticipates a period of muted market growth, citing weaker spending among its core customer demographic and the early stage of innovation pipelines at key brand partners, particularly in footwear.
Despite these headwinds, JD Sports said it remains confident in its ability to outperform the market. In FY27, the group plans to accelerate initiatives across marketing, ranging, digital platforms, data and loyalty, artificial intelligence, and store optimisation to strengthen its customer proposition. Controlled price investments, weighted towards the first half of the year, will continue alongside strict trading discipline.
A sustained focus on cost efficiency and productivity, particularly in North America and Europe, is expected to support operating margin expansion over the medium term. The group also reiterated its commitment to shareholder returns, underpinned by strong free cash flow generation.
“Looking ahead, we remain confident that our agile, multi-brand, cross-category approach will enable us to outperform the market and deliver enhanced shareholder returns. For FY26, we expect full-year profit before tax and adjusting items to be in line with current market expectations, alongside free cash flow of £400 million, supported by disciplined execution and a strong balance sheet,” said Regis Schultz, CEO of JD Sports Fashion.
For the fourth quarter (Q4) to date, JD Sports reported organic sales growth of 1.4 per cent, with like-for-like sales down 1.8 per cent, broadly in line with the previous quarter. North America recorded a marked improvement in like-for-like performance and returned to growth, offset by weaker trends in Europe and the UK. Apparel sales remained resilient, while footwear softness persisted due to end-of-cycle product headwinds.
“Overall sales during the peak period were in line with our expectations against a volatile consumer backdrop. Black Friday delivered strong engagement across all regions, but demand softened in early December, particularly in Europe and the UK. Targeted price investments in the final weeks supported improved sales momentum ahead of and after Christmas, demonstrating the strong appeal of JD and its complementary fascias in a challenging market,” added Schultz.
Fibre2Fashion News Desk (SG)
