JD Sports stands as one of the most recognizable sportswear retailers in Britain, yet the stock market has been unkind to the firm in recent years. The company’s latest trading update revealed a 3.1% decline in like-for-like sales for the 13 weeks ending August 1.
Performance in North American stores was particularly disappointing, with a 6.8% drop. This is significant because the region accounted for 38% of group sales in FY26, generating £4.8bn in revenue through banners such as JD, Hibbett, Shoe Palace, DTLR, and Finish Line.
Management has lowered its adjusted pre-tax profit forecast for 2026/27 to a range of £700m-£800m, down from the previous estimate of £750m-£850m.
Despite these lackluster results, I believe the market is failing to account for the long-term resilience of JD, and I will outline my reasoning below.
Why sales are under pressure
The immediate causes are well-documented. Consumers are exercising greater caution regarding non-essential spending, while the sportswear sector remains highly competitive and promotional. JD’s chief executive, Régis Schultz, said the quarter reflected “<a and "incremental cost-of-living pressures."
North America also dealt with a sluggish quarter regarding demand for high-heat footwear and a delay in back-to-school shopping requirements.
Competition presents an business is performing more steadily than the interim results might imply.
To further illustrate this, like-for-like sales in the UK grew by 0.8%, while the Asia-Pacific region saw an increase of 1.4%.
Why the recovery case remains alive
Rather than remaining passive, JD Sports is actively implementing a turnaround strategy. Management reports that apparel and accessories are seeing growth, while performance running gear and newer footwear silhouettes are gaining momentum.
Online sales show particular promise, rising 2.6% in the most recent quarter. This serves as strong evidence that the retailer can successfully engage customers beyond the traditional brick-and-mortar experience, even when foot traffic is down.
The company is also prioritizing convenience. In January, the footwear giant announced initiatives to allow US customers to search for and purchase productsmmercetools and Stripe
