Highlights

  • Total Q3 sales rose 8.1% at constant FX rates, supported by acquisitions and improved trends in North America and Europe.
  • Q3 gross margin declined 30bps year-on-year excluding acquisitions, influenced by controlled price investments online.
  • Company expects FY26 PBTAI to land at the lower end of current market expectations amid softer macro indicators.

JD Sports Fashion plc (LSE:JD) has issued its trading statement for the third quarter of FY2025/26, reporting higher total sales and improved like-for-like trends in several core regions. While apparel continued to perform well, the group noted ongoing weakness in footwear linked to end-of-cycle product lines. The company emphasised operational discipline, ongoing strategic execution and careful management of costs as it enters the peak fourth-quarter trading period.

Q3 Sales Lifted by Acquisitions and Improved Regional Trends

Total Q3 sales increased 8.1% at constant FX rates, contributing to 15.7% growth year-to-date. JD reported a better like-for-like trajectory in North America, where Q3 LFL was –1.7% compared with weaker figures earlier in the year. Europe also held up, delivering a Q3 LFL of –1.1%. The UK showed improvement versus the prior quarter despite a challenging consumer environment and warmer September weather that weighed on apparel demand.

Across regions, footwear continued to experience pressure from the end of key product cycles, though the running category demonstrated continuing momentum. Apparel saw healthier demand in all major markets, supported by updated product ranges.

North America Benefits from Digital Upgrades

North America accounted for 37% of Q3 sales, with organic revenue up 3%. Excluding Finish Line, LFL was close to flat at –0.2%, supported by a stable back-to-school season. Online activity remained elevated, helped by improved digital ranges, new e-commerce platforms and focused marketing. The conversion of Finish Line stores to the JD fascia continued, although promotional intensity remained high across the market.

Europe and UK Deliver Resilient Apparel Sales

In Europe, which represented 35% of Q3 sales, organic growth reached 4%. Sporting goods delivered steady performance, and apparel continued to advance. Footwear remained softer, particularly in women’s and juniors’ athletic categories. Online sales in the region were supported by ‘ship-from-store’ fulfilment and controlled price investments. JD Italy launched the group’s new e-commerce platform, showing encouraging early results.

UK Trends Improve Against Difficult Conditions

The UK, accounting for 24% of Q3 sales, recorded LFL of –3.3% and organic revenue decline of 2%. Despite weather-related disruption in September, apparel performed well, especially in women’s categories. Store conversion remained healthy even with lower footfall, while the higher online sales mix left the region more exposed to promotional dynamics linked to footwear cycles.

Gross Margin Moves Lower but Remains Controlled

Group gross margin for Q3 declined 30bps year-on-year excluding acquisitions, primarily due to planned price investments online. Including Courir, acquired in November 2024, margin fell 40bps. Inventory levels remain well managed ahead of the key Q4 period.

Guidance Adjusted Amid Softer Consumer Indicators

JD highlighted ongoing macroeconomic uncertainty, including weaker consumer indicators and pressures on its core demographic. Given the importance of the upcoming peak trading season, the company expects FY26 PBTAI to fall within the lower end of market expectations. JD also reaffirmed plans to generate strong free cash flow and complete GBP 200m in share buybacks during FY26.