JD Sports reports weak UK demand despite group sales growth

JD Sports reported a 2.5% increase in organic sales at constant currency rates to £12.66 billion in the 52 weeks ending in January 2026, driven by growth in all regions except for the UK, where organic sales declined by 2.5%.

The retailer's Profit before tax and adjusting items (PBTAI) was down 7.7% to £852 million, compared to £923 million in 2025. Unlike EBITDA, the PBTAI measurement disregards items such as acquisition-related charges, restructuring costs and integration expenses to reflect a more organic view of earnings.

In the UK, which currently makes up 25% of the Group's annual sales compared to 28% in 2025, the retailer reported that across both its JD and Outdoor businesses its faced a "tough consumer backdrop". Its online channels were particularly effected, with its physical stores also suffering from lower footfalls, although this was partially made up by strong conversion rates.

Th retailer noted that the decrease in sales were driven by softness in footwear linked to end-of-cycle product lines and a weaker demand in athletic footwear for women compared to the previous year. Yet it also noted that apparel, particularly womenswear and outwear, delivered a "more resilient underlying performance". 

Across the year, JD exited a net of 24 stores in the UK, part of its strategy to optimise its physical retail portfolio to focus on 'fewer, bigger, better' stores. However, despite lower store count its net selling space increased by 4% in the full year. Part of this strategy was the opening of its Trafford Centre flagship in Manchester, which is now the retailer's largest store globally  and showcases its investment in a "small number of destination stores to anchor regional presence and elevate brand expression".

JD Gyms also noted a strong momentum with record sign-ups across its 100 sites in the UK.

North America, which is currently JD's biggest market and makes up 38% of Group sales, saw an improving performance through the year, with an organic sales growth of 3.2%. Organic apparel sales stood out with a circa 22% increase year on  year, the best performance across all its regions.

Régis Schultz, CEO of JD Sports Fashion commented: "We delivered a resilient performance, achieving organic sales growth of 2.1% despite tough market conditions. Our deep understanding of our customers and lifestyle trends give us a clear view of how they want to shop and spend, allowing us to consistently deliver the right products, in the right places and at the right prices. 

"We also made good progress against our strategic priorities, launching automation at our Heerlen distribution centre to support JD Europe store replenishment, and advancing our global e‑commerce re‑platforming programme, with full roll‑out to Europe and the UK planned for later in 2026. These programmes are critical stepping stones in future-proofing the infrastructure for a Group of our scale, creating a robust platform that enables us to operate more efficiently and drive future growth. My thanks go to all my colleagues for their relentless energy and commitment.

"Whilst we continue to expect muted market growth in FY27, we remain confident in JD Group's medium‑term trajectory, underpinned by our strong brand partnerships and agile, multi‑brand model. For the year ahead we are focused on further enhancing and optimising our product offer, customer experience and store footprint, and delivering strong cost and cash discipline - in essence, 'controlling the controllables'. These actions position us well to deliver on our new commitments on free cash flow and cash returns to shareholders announced today."

In April JD Sports Chair Andy Higginson announced his intention to step down from his role in July, with new reports suggesting that his departure follows a failed attempt to convince the board to oust CEO Regis Schultz.