JD Sports Fashion PLC (LSE:JD., OTC:JDSPY) posted interim results in line with expectations and kept its cautious full-year outlook unchanged due to continued pressure on consumer finances and shifts in the tectonic plates of the global market for trainers.
The FTSE 100-listed retailer declared an interim dividend of 0.33p per share and confirmed that the second £100 million share buyback announced last month will begin soon.
A 20% increase in group sales at constant currency of £5.94 billion was reported for the 26 weeks ended 2 August, with organic sales at constant currencies up 2.7% and like-for-like sales declining 2.5%.
Operating profit before adjusting items fell 8.2% to £369 million, reflecting a gross margin decline of 60 basis points to 48%.
Profit before tax and adjusting items was £351 million, down 14% but in line with guidance.
Chief executive Régis Schultz said the backdrop was a "tough trading environment" and the positive organic growth "demonstrates the resilience of our business, underpinned by our agile multi-brand model, broad geographic reach and unmatched connection with customers".
He hailed growth in North American market share and brand awareness as the integration of Hibbett progressed.
He said investments in supply chain are "poised to unlock significant efficiencies across our global network", with automation of a new European distribution centre in the Netherlands to begin shortly, while a US site in Morgan Hill is scheduled to go live by year-end.
On the outlook, JD expects full-year profit before tax and adjusting items to align with current market expectations, and sees limited impact from US tariffs this year.
"We remain cautious on the trading environment for the second half of the year, reflecting continued pressure on consumer finances, elevated unemployment risk, and the ongoing transition in the footwear product cycle," it said.