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UK sportswear retailer JD Sports has warned of volatile trading this year as tariffs hit its US customers and suppliers but said it expects profits to remain steady.
The retailer, which makes just under 40 per cent of its sales in the US, said in an update to investors that it expected profits of between £915mn and £935mn for the year to February 1, in line with previous guidance in January. Its shares closed up nearly 10 per cent in London on Wednesday, making it the best performer of the FTSE 100.
Analysts’ consensus for profit before tax and adjustments for the financial year to February 2026 is £920mn, but before factoring in the impact of tariffs on the business and on key suppliers such as Nike and Adidas.
“There is a good chance that the impact will be shared by the brands and the retailers like JD — so not all out of their pocket — but it is definitely going to weigh on sector volumes,” analysts at Panmure Liberum said last week.
Shares in sports shoe companies including Nike, Adidas and Puma tumbled this week after the Trump administration announced much higher tariffs on imports from manufacturing hubs such as Vietnam. Many brands cannot easily move production elsewhere.
JD Sports, which has been buying up rivals in the US, said that it was too soon to assess the impact of tariffs on the industry but it expects “the trading environment in our key markets to be volatile throughout the year”.
“At this stage, the outcome of these developments is uncertain. We are in regular dialogue with our brand partners,” it said.
Separately, the company announced it would buy back £100mn of shares, which have lost 70 per cent of their value since the end of 2021.
In January it lowered its profit forecast on weaker consumer demand and heavy discounting by rivals.
