When JD Sports Fashion plc released its Q3 2025/26 results on November 20, 2025, investors didn’t just see a numbers dip—they saw a warning sign for the entire sportswear retail sector. The JD Sports Fashion plc headquarters in Bury, Greater Manchester, reported a 1.7% decline in like-for-like sales, even as organic growth ticked up slightly to 2.4%. The twist? The company simultaneously slashed its full-year profit forecast, now expecting between £853 million and £888 million, down from £923 million last year. It’s not just a bad quarter—it’s a pattern. Shares fell 1% the next day, extending a 12-month slide of 30%.
Why Nike’s Slump Is Hitting JD Hard
Here’s the thing: roughly 45% of JD Sports’ sales come from Nike. And right now, Nike’s momentum is sputtering. The brand’s key footwear lines, especially in North America, are at the end of their product cycle. Customers aren’t replacing them. Apparel held up better, and the Running category even posted gains—but that’s not enough to offset the broader softness. Analysts at BrandEquity and World Footwear say the market is waiting for Nike’s reset to gain real traction, with the 2026 FIFA World Cup in North America as the potential turning point. The tournament kicks off June 11, 2026, across the U.S., Canada, and Mexico. Until then, retailers like JD are stuck in a discount spiral, trying to move inventory without killing margins.Regional Breakdown: Europe Stumbles, Asia Surges
The numbers tell a story of diverging fortunes. In North America, which accounts for 37% of JD’s quarterly sales, like-for-like sales dropped 1.7%. But peel back the layers: excluding the Finish Line acquisition, the decline was just 0.2%. Back-to-school sales met expectations, suggesting the problem isn’t demand for sportswear—it’s demand for the *wrong* products. Meanwhile, in Europe, LFL sales fell 1.1%, but organic growth hit 4.0%. The UK, however, remains a drag: LFL sales dropped 3.3%, though that’s an improvement from Q2’s -4.5%. The real bright spot? Asia Pacific. Organic sales surged 13.3%, hitting £124 million. That’s not just growth—it’s a signal that JD’s strategy in emerging markets is working, even as Western consumers pull back.Margins Under Pressure, But Discipline Holds
Gross margin slipped 30 basis points year-over-year (40 with acquisitions), but here’s the quiet win: the decline narrowed from Q2. JD says it’s holding firm on “strict trading discipline,” especially online, avoiding deep discounting that could erode brand value long-term. That’s smart—because when margins are thin, price cuts feel like the only lever. But JD’s leadership, led by CEO Régis Schultz, is betting on patience. “We are navigating a year of volatility with disciplined execution,” Schultz said in the trading statement. He’s not panicking. He’s positioning.
Integration Progress and Tariff Shield
The integration of Finish Line—acquired in 2023—is finally paying off. Schultz confirmed “synergies are beginning to materialise,” a phrase investors have waited to hear. And while the global trade landscape is tense, JD says it expects “only a limited impact” from tariffs under former U.S. President Donald Trump’s policies. That’s a relief. Analysts had feared a 5-7% cost increase on imported goods, which could have forced even steeper price hikes. Instead, JD’s supply chain team appears to have hedged well.What’s Next? The World Cup Catalyst
The next 7 months are critical. If Nike’s new performance line drops early next year and gains traction in the U.S., JD’s inventory could turn from liability to asset. The 2026 World Cup isn’t just a sporting event—it’s a retail event. Stadiums, fan zones, and social media will be flooded with team kits, cleats, and hoodies. JD’s entire Q4 and Q1 2026 strategy hinges on this window. And if they can convert even a fraction of that global hype into sales, the 30% stock decline might look like a buying opportunity.
Behind the Numbers: A 44-Year Legacy in Bury
Founded in 1981 by John Wardle and David Makin in Bury, JD Sports has grown from a single store to 3,200 locations across 52 countries. It’s not just a retailer—it’s a cultural anchor in the UK’s high street. But as consumer habits shift, even giants must adapt. The question isn’t whether JD will survive. It’s whether it can reclaim its growth engine before the next retail wave crashes over it.Frequently Asked Questions
How is JD Sports different from competitors like Foot Locker or Decathlon?
Unlike Foot Locker, which focuses heavily on North America and Nike exclusives, JD Sports operates a multi-brand, multi-region model with strong presence in Europe and Asia. Unlike Decathlon, which sells private-label gear at low margins, JD leans on premium brands like Nike, Adidas, and New Balance—making it more vulnerable to brand-specific demand swings but also more profitable when those brands perform.
Why did organic sales grow while like-for-like sales fell?
Organic sales exclude new stores and acquisitions, so the 2.4% growth means existing stores are still expanding, just slower than before. The LFL decline reflects weaker sales at stores open over a year, likely due to reduced foot traffic and fewer full-price purchases. It’s a sign that customers are visiting less often or buying fewer items per trip.
What’s driving the Asia Pacific growth?
Asia Pacific’s 13.3% organic growth comes from strong demand in China, South Korea, and Australia, where athleisure remains popular and JD’s local marketing campaigns—especially around basketball and running—are resonating. The region also has less saturation than Europe, giving JD room to open new stores without cannibalizing existing ones.
Could JD’s profit forecast drop further?
Yes—if Nike’s product reset stalls or if consumer confidence in the UK and U.S. worsens before the World Cup. JD’s guidance already sits at the low end of analyst expectations. A further 5% drop in Q4 sales could push profits below £850 million, triggering more investor concern and potential stock pressure.
How much of JD’s sales come from online channels?
While JD hasn’t disclosed exact online sales figures, its focus on “controlled price investments, particularly online” suggests digital channels are growing faster than physical stores. Online sales likely represent 30-35% of total revenue, up from 25% two years ago, making it a key battleground for margin control.
Is Régis Schultz likely to stay as CEO amid the downturn?
Yes. Schultz, a French executive who took over in 2019, has a track record of navigating retail turbulence, including the pandemic and supply chain crises. Investors see him as steady-handed. Unless Q4 shows a dramatic collapse, his leadership is expected to continue through the World Cup cycle, giving him time to turn the strategy around.