British sportswear retailer JD Sports reported a 2% drop in first-quarter sales. The company attributed part of this decline to a volatile market and weaker consumer spending.
U.S. Tariffs Cloud Demand
JD Sports earns nearly 40% of its revenue in the U.S. through its Finish Line, Shoe Palace, and Hibbett banners. It warned that higher prices resulting from President Trump’s tariffs could further dampen demand. In April, JD had already cautioned that full-year profits would rise only modestly, even before accounting for possible tariff impacts.
Weakness in Nike Sales
Nike products make up about 45% of JD Sports’ sales. The retailer noted that falling demand for Nike brands added to its headwinds this quarter. Rising competition and uncertain consumer sentiment also weighed on performance.
Shares Slide on Results
JD Sports’ shares fell 6% to 87p in early trading after the results. Over the past 12 months, the stock has lost 30%, underperforming the U.K. blue-chip index, which is up 4%.
Analyst Take on Underlying Sales
RBC analysts estimated that “underlying” sales were down 2% in the 13 weeks to May 3—a smaller decline than many had expected. Panmure Liberum commented that, while tariffs remain manageable, they keep the company “on the sidelines.” The broker also noted the share weakness could appeal to long-term investors.
Diversification and Sourcing Strategy
In response to tariff risks, JD Sports said it will expand the range of countries from which it sources goods. The group sells other major brands—including Adidas, On, and HOKA—through nearly 5,000 stores and online channels worldwide.
Outlook and Medium-Term Confidence
JD Sports did not issue formal guidance for the current fiscal year. The market generally expects pre-tax profit to fall around 3% to £890 million (approximately $1.19 billion). Despite the challenges, the company said it remains confident in improving shareholder returns over the medium term, thanks to its multi-brand model and ongoing focus on cost control.
