JD Sports Fashion (JD) H2 2025 earnings summary

Executive summary

• Achieved 10.2% revenue growth to $11.5 billion (£11,458m), driven by store rollout and strategic acquisitions of Hibbett (US) and Courir (Europe), expanding market share in North America and Europe.

• Gross margin remained stable at 47.8%, with operating profit before adjusting items at £937m, and strong cash flow, ending the year with net cash despite £1.4bn spent on acquisitions.

• Progressive dividend policy maintained, with dividend per share up 11% and a share buyback program initiated.

• Store expansion continued with 203 new JD stores opened and 49 conversions, maintaining a disciplined three-year payback.

• Focused on organic growth, operational efficiency, and leveraging investments in supply chain, IT, and governance.

Financial highlights

• Revenue up 10.2% year-over-year (12% constant currency); gross margin at 47.8%, down 20bps due to acquisitions but flat underlying.

• Operating profit before adjusting items and after lease interest at 8.2%, down from 9.0% year-over-year.

• Adjusted PBT down 3% constant currency; adjusted EPS at 12.39p, down 3.3% year-over-year.

• Operating cash flow net of lease payments exceeded £1.2 billion; net cash before IFRS 16 at £52 million.

• Store rollout and M&A contributed equally to revenue growth (c.6% each); well-balanced revenue mix: North America 37%, Europe 31%, UK 28%, Asia Pacific 4%.

Outlook and guidance

• FY2026 expected to remain challenging and volatile, with low visibility on tariff impacts and no material change in market environment anticipated.

• Over 200 new and relocated stores planned; £1.1–1.2 billion ($1.1–$1.2 billion) incremental revenue from full-year impact of acquisitions.

• Gross margin targeted to remain stable; CapEx around £450–500 million.

• Profit expected to be more weighted to H2; synergy benefits from US integration to start materializing (£20m+ cost reduction, $25m synergies in FY26).

• Consensus for FY2026 PBT at £890 million, with management comfortable at this level, pre-tariffs.