Second quarter group like-for-like sales down 3.0%
UK like-for-like sales down 6.1%, North America down 2.3%
Forecasts full year profit in line with market expectations
Shares up 4%
Adds shares paragraph 4, analyst comment 7, detail throughout
By James Davey
LONDON, Aug 27 (Reuters) - JD Sports Fashion JD.L reported a steeper decline in second quarter underlying sales, reflecting weakness in the UK, though there were signs of stabilisation in its key U.S. market after a sharp decline in the previous quarter.
The sportswear retailer, which makes nearly 40% of its revenue in the United States through its JD Sports, Hibbett, DTLR and Shoe Palace stores, said like-for-like sales for its second quarter to August 2 fell 3.0%, having been down 2.0% in the first quarter.
Shares in FTSE 100-listed JD have lost a third of their value over the last 12 months, reflecting a market driven by discounts, a drop-off in demand for Nike NKE.N products, which account for about 45% of its sales, and uncertainty over the impact of U.S. President Donald Trump's tariffs on costs and consumer demand.
The stock was up 4% in early trading Wednesday.
The group said a 6.1% fall in like-for-like sales in the UK reflected a tough prior year comparison when trade was boosted by the men's Euro 2024 soccer tournament.
But it saw an improving trend in North America where like-for-like sales fell 2.3%, having been down 5.5% in the previous quarter, reflecting the deferral of several product launches from the first quarter, as well as stronger sales trends in apparel and online.
"We believe this is a better outcome than the market expected and is further vindication of strategy," analysts at Peel Hunt said.
JD forecast full-year 2025/26 profit before tax and adjusting items in line with current market expectations of 852 million pounds to 915 million pounds ($1.15-$1.24 billion), down from the 923 million pounds made in 2024/25.
That forecast is, however, before any indirect impact of U.S. tariffs which the group is continuing to work through.
"Across our regions and fascias, in general we see a resilient consumer, albeit very selective on their purchases. We therefore remain cautious on the trading environment going into H2," CEO Regis Schultz said.
JD also announced a new 100 million pound share buyback programme, which it said reflected its confidence in medium-term industry growth and ongoing market share gains.
($1 = 0.7402 pounds)
(Reporting by James Davey; Editing by Kate Holton and Sharon Singleton)
((james.davey@thomsonreuters.com))
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