UK's JD Sports falls on lower sales, US tariffs warning

Time of India

22-05-2025

HighlightsBritish sportswear retailer JD Sports experienced a 2% decline in first-quarter sales and warned that increased prices in the United States due to tariffs could negatively affect customer demand. The company's shares dropped by 6% following the announcement, reflecting a 30% decline over the past year, significantly underperforming the UK's bluechip index, which has risen by 4%. JD Sports aims to mitigate the potential impact of tariffs by diversifying the range of countries from which it sources goods while maintaining confidence in delivering improved shareholder returns through its multi-brand model.
British sportswear retailer
JD Sports
posted a 2% fall in first-quarter sales and warned that higher prices in its key U.S. market from President Donald Trump's tariffs could hit customer demand, sending its shares down 6%.
JD, which makes nearly 40% of its sales in the United States through its
Finish Line
, Shoe Palace and Hibbett stores, warned in April that profits would only grow slightly, if at all, this year, even before any potential impact from tariffs.
The company is facing headwinds from a competitive and volatile market, worries over
consumer spending
and a drop-off in demand for
Nike
products, which account for 45% of its sales.
Shares in JD Sports slid 6% to 87 pence in early deals. The stock has lost 30% over the last 12 months, underperforming Britain's bluechip index, which is up 4%.
RBC analysts said the 2% drop in underlying sales for the 13 weeks to May 3 was softer than market expectations.
The group said on Wednesday that while it had limited visibility on the impact from tariffs, it was taking action by further diversifying the range of countries from which it sources goods.
The biggest potential impact would be a rise in the price of products for U.S. consumers, which could impact demand and dent confidence, JD warned.
"The tariff impact, though manageable, keeps us on hold," Panmure Liberum said, adding that current weakness was an opportunity for long-term investors.
JD, which also sells
Adidas
, On, HOKA and other sports brands from nearly 5,000 stores worldwide and online, did not on Wednesday give guidance for the current financial year. The consensus is for a 3% fall in pretax profit to 890 million pounds ($1.19 billion).
In the medium term, JD said it remained confident of delivering improved shareholder returns and said it was well positioned given its multi-brand model and focus on costs.