JD Sports Fashion PLC (LSE:JD.) will issue a second-quarter trading statement on Wednesday 27 August, with investors focused on the impact of tariffs and performance in the US.
The July 2024 acquisition of Hibbett has made the US JD’s largest revenue contributor, accounting for around 37% of sales. With much of its product sourced from Asia, analysts note that tariff exposure has become a central risk.
Consensus for the full year is for underlying pre-tax profit of around £890 million, with management previously guiding that profitability will be weighted to the second half.
Commentary on pricing will also be watched closely, as JD has sought to resist discounting despite competitive pressure.
In the run-up to the results, Deutsche Bank turned more positive after a sceptical time on the sidelines, but kept its 'hold' rating.
These discounting pressures are pertinent to this, as analyst Alison Lygo says US consumers are showing price sensitivity, raising risks JD may absorb more discounting pressure.
The Deutsche analyst said progress is visible but not yet translating into earnings upside, with the discounting pressure and JD’s relationship with Nike remaining a concern as the brand pulls back from wholesale partners.
However, she said if "line of sight" to a Nike comeback and "rebuild of confidence in management" would be supportive for the shares' ability to re-rate.