JD Sports Fashion (JD) investor relations material

Executive summary

• Organic sales declined 0.7% year-on-year to £5,899m, reflecting resilience amid cost-of-living pressures and a highly promotional market, with over 100 fewer stores as part of a strategy for fewer, bigger, and better locations.

• Apparel and accessories grew to 36% of group sales, with online sales up over 5% and now representing 20% of group sales, driven by e-commerce replatforming and technology investments.

• Net cash position improved to £168m from net debt of £125m a year ago, supported by strong cash generation and disciplined capital allocation.

• Strategic progress included product diversification, store productivity, global e-commerce replatforming, AI adoption, and expansion into Mexico via franchise.

• FY27 guidance unchanged: profit before tax and adjusting items of £700m–£800m and free cash flow of £460m–£520m.

Financial highlights

• Revenue: £5,899m (down 0.7% YoY); like-for-like sales declined 2.8%.

• Gross margin: 46.8% (down 20bps YoY), impacted by controlled price investments.

• Operating profit before adjusting items: £294m (down 20% YoY); operating margin 5.0% (down 120bps).

• Statutory profit before tax rose 74.6% to £241m, reflecting lower adjusting items.

• Adjusted basic EPS: 3.97p (down 13.7% YoY); interim dividend per share increased 21.2% to 0.40p.

• Free cash flow: -£18m (improved from -£68m YoY); net cash before lease liabilities: £168m.

Outlook and guidance

• FY27 guidance reiterated: profit before tax and adjusting items of £700m–£800m, free cash flow of £460m–£520m.

• Net new space expected to contribute 2–3% to sales growth.

• CapEx guidance for the year reduced to £350–£400m; targeting 3–3.5% of sales.

• Cumulative free cash flow target of at least £1.4bn over three years reaffirmed.

• Market outlook remains muted, with potential downside from macro and geopolitical risks.