JD Group reports 18 percent sales increase in H1, driven by acquisitions

JD Group has reported its interim results for the first half of fiscal year 2026, showing total sales of 5.94 billion pounds, an 18 percent increase from the prior year. At constant exchange rates, this represents a 20 percent growth, largely driven by the acquisitions of Hibbett and Courir.

Organic sales growth, which excludes these acquisitions, was 2.7 percent. Despite this, the company's profit before tax and adjusting items (PBTAI) decreased by 13.5 percent to 351 million pounds. JD Group's gross margin also fell by 60 basis points to 48 percent, primarily due to "controlled price investments" in its online offerings. The company's statutory profit before tax, however, increased by 9.5 percent to 138 million pounds.

CEO Régis Schultz noted that the company has gained market share in North America and Europe, despite a challenging consumer environment. The company's North American operations are progressing well, with market share gains and growing brand awareness. The integration of acquisitions like Hibbett and Courir is on track, strengthening the company's presence in these key markets. JD Group is also making significant investments in its global supply chain, with new distribution centres in Europe and the US set to become operational in the coming months.

North America sales improve, UK declines

The company's performance varied by region and product category. Footwear sales were softer globally due to an "ongoing shift in product cycle". However, apparel sales showed a "good underlying performance" globally. Online sales, which make up 19 percent of Group sales, also saw mixed results, with North America seeing a much-improved performance, while the UK saw a year-on-year decline.

In North America, the Group delivered organic sales growth of 3.1 percent, driven by 31 JD store openings and the development of its complementary fascias (e.g. DTLR, Hibbett, Shoe Palace) in its biggest market. In Europe organic revenue increased by 6 percent, helped by the opening of 44 new JD stores, with a focus on Spain, Italy, France and Poland, while in the UK, organic sales declined 1.7 percent in H1, as the Group was impacted by tough Q2 comparators from the Euros 2024 football tournament.

JD opened four flagship stores in the period: Las Vegas, Vancouver, Melbourne, and the largest JD globally at Manchester’s Trafford Centre – which has delivered strong early results since its launch in June. The company ended the period with 4,872 stores in 36 countries across fascias including JD, Hibbett, Shoe Palace, DTLR, Courir, Sport Zone and Sprinter.

JD reveals cautious forecast

Looking ahead, JD Group remains cautious about the trading environment in the second half of the year, citing continued pressure on consumer finances and the ongoing transition in the footwear product cycle. However, the company expects its full-year PBTAI to be in line with current market expectations of 878 million pounds.

The company also anticipates a limited financial impact from US tariffs in the current fiscal year, thanks to a diversified sourcing strategy and inventory purchased prior to the tariffs' implementation.

The board has declared an interim dividend of 0.33 pence per share, consistent with the prior year. Additionally, JD Group will commence a second 100 million pounds share buyback program, bringing the total buyback to 200 million pounds.