JD Sports Fashion (JD) H2 2026 earnings summary

Executive summary

• Delivered resilient FY26 performance with total sales up 11.7%, driven by acquisitions, disciplined execution, and a customer-first approach.

• North America became the largest region by sales and profit, showing improving momentum through operational and brand investment, with 3.2% organic growth.

• Free cash flow rose 36% year-over-year to £462 million, supporting a proposed 20% dividend increase and a rolling £200 million annual share buyback.

• FY 2026 turnover reached £12.7 billion, up from £8.6 billion in 2022, achieving double-digit annual growth.

• FY 2027 guidance focuses on controlling controllables and advancing five key strategic priorities.

Financial highlights

• Total sales reached £12,662m, up 11.7% year-over-year, with organic sales up 2.1% and LFL sales down 2.1%.

• Gross margin remained flat at 47.0% after restatement for accounting reclassification.

• Operating profit (including lease interest) was £886 million, down 5.4%, with a 7% operating margin.

• Profit before tax and adjusting items was £852 million, down 7.7% year-over-year; statutory PBT was £629 million, down 12%.

• Adjusted EPS fell 5.5% to £0.1171; dividend per share increased 20% to 1.20p.

• Free cash flow improved by 36% to £462 million, representing a 35% EBITDA conversion.

• Net cash position increased by £259 million to £311 million after dividends and buybacks.

Outlook and guidance

• FY 2027 market growth expected to be muted, with consumer sentiment subdued in the UK and Europe but more resilient in the US.

• Profit before tax and adjusting items guided to £750–£850 million; free cash flow expected between £460–£520 million.

• Net new space growth to contribute 2–3% to sales; continued focus on cost efficiencies and productivity initiatives.

• Gross CapEx to stabilize at 3–3.5% of sales over the medium term.

• Commitment to progressive, sustainable dividend growth and ongoing £200 million annual share buyback.