JD Sports Fashion has unveiled disappointing UK sales figures for the crucial festive trading period, revealing a significant decline as consumer demand softened across Britain and Europe. The sportswear and fashion retailer reported a 5.3% drop in UK like-for-like sales during the nine weeks to January 3, highlighting challenges in its domestic market.
Festive Trading Challenges Across Regions
The group said demand "softened" in the first half of December across both Britain and Europe, contributing to the disappointing performance. Overall, JD Sports saw group comparable store sales fall by 1.8% during the nine-week festive period. This decline came despite a better performance in the United States, which represents the company's largest market, where sales actually rose by 1.5%.
Offsetting Performance Between Markets
The positive performance in the US market was unfortunately offset by weak trading in both the UK and Europe. Looking at the broader picture, group-wide sales for the 48 weeks of its financial year to January 3 dropped by 2.1%, indicating sustained challenges across multiple markets.
Profit Forecasts and Market Outlook
Despite the sales decline, JD Sports said it remains on track with full-year profit forecasts. Most analysts are expecting profits to drop to approximately £849 million from £923 million in the 2024-25 financial year. The company struck a notably cautious note regarding future prospects, stating it expects "muted market growth" throughout 2026-27.
Executive Commentary on Trading Conditions
Regis Schultz, chief executive of JD Sports, described the trading environment as a "volatile consumer backdrop." He provided specific details about the festive trading pattern, noting: "Black Friday saw strong customer engagement across all regions, but demand softened in the first half of December, particularly in Europe and the UK."
Schultz explained the company's strategic response to these challenges: "We responded decisively in the final weeks of the period by choosing to make targeted price investments, and we saw improved sales in the immediate run-up to Christmas Day and the period after." This tactical pricing approach helped mitigate some of the earlier weakness during the crucial holiday shopping season.
Broader Retail Context and Implications
The JD Sports results come amid wider concerns about consumer spending patterns and retail sector performance. The company's experience of strong Black Friday engagement followed by December softening reflects broader consumer behaviour trends that have been observed across the retail landscape. The targeted price investments mentioned by Schultz represent a strategic attempt to stimulate demand during what has become an increasingly competitive and challenging retail environment.
As JD Sports navigates what it describes as a "volatile" trading environment, these results highlight the ongoing pressures facing retailers even during traditionally strong seasonal periods. The company's cautious outlook for market growth in the coming year suggests continued challenges ahead for the retail sector more broadly.
