JD Sports Fashion (JD) Trading Update summary

Trading performance and market conditions

• Achieved record daily global sales of £100 million on two occasions, with less than 25% from the UK.

• December trading was robust, but November and Black Friday were below expectations due to heightened sector promotions and cautious consumer behavior.

• Organic revenue growth for the period was 3.4%, with full-year organic revenue growth expected around 5%.

• Like-for-like revenue was down 1.5% for the period, with year-to-date like-for-likes flat and expected to remain so.

• Europe and Asia-Pacific saw like-for-like growth, while North America and the UK were negative.

Margins, stock, and financial discipline

• Maintained strong gross margin over 48% during the period, ahead of last year, with full-year margin expected in line with last year.

• Chose not to participate in elevated promotional activity, supporting margin and long-term brand relationships.

• Managed stock well, ending the period in a comfortable position across all geographies, with significant stock reduction in Iberia.

• Expect to end the year with a small net debt position after investing £1.4 billion in acquisitions.

Strategic initiatives and acquisitions

• Opened over 200 new JD stores by November, including 50 conversions, with payback periods faster than the three-year target.

• Completed the Courir acquisition, expanding the customer base to more female and fashion-conscious demographics.

• Hibbett performed slightly ahead of the North America region, and Courir had a strong peak season.

• Hibbett and Courir expected to contribute incremental profit in the coming year, with Courir's EBIT at about £10 million on £140 million revenue for the period.