Fashion
Mixed update from JD Sports details progress in key markets but UK weakness
Published
August 27, 2025
Retail giant JD Sports Fashion has issued a trading update for Q2 and the first half and while like-for-like (LFL) sales dipped in both periods, ‘organic’ sales rose (organic for JD refers to currency-neutral sales factoring out acquisitions). Importantly too, it said its new giant Manchester store is performing strongly.
And while many headlines chose to focus on the negatives, it’s perhaps significant that the firm’s share price rose almost 3% as the markets opened.
The company itself chose to focus on the improved LFL sales trend for Q2 in North America but said Europe and the UK combined were affected by “tough prior year comparatives” due to last year’s Euro 2024 football tournament (clearly the Women’s Euros this year didn’t have the same impact).
But it said it saw a good performance in apparel, although footwear was softer “given end of cycle for key product lines”.
JD also said it made “strong progress” against its strategic objectives across its omnichannel customer proposition, store footprint, supply chain and North America operations, and costs and cash are being “well controlled”.
It now expects FY26 profit before tax and adjusting items (PBTAI) to be in line with current market expectations, “albeit we continue to assess potential impacts from US tariffs”.
The numbers
So, let’s look at the actual figures for Q2 and H1. For the second quarter – the 13 weeks to 2 August – group LFL sales fell 3% but they rose 2.2% on an organic basis. That divided into a 2.3% LFL drop for North America but a 4.8% organic rise; a 1.1% LFL dip for Europe and a 5.4% organic increase; a 6.1% LFL drop for the UK and a 4.5% organic drop in its home market; and a 0.3% LFL increase for Asia pacific with a 9.3% organic rise there.
And for the first half – the 26 weeks to 2 August – group LFL sales fell 2.5% while they rose 2.6% organic. Again, looking at individual regions North America was down 3.8% LFL and up 3.1% organic; Europe dipped 0.4% LFL and rose 5.9% organic; the UK dropped 3.3% LFL and fell 1.8% organic; and Asia pacific was down 2.4% LFL and up 6% organic.
It’s clear from this that the UK remains a problem market for the company and that performances are much better in North America, Europe (even with the aforementioned tough comparatives) and the still-very-small Asia Pacific.
Looking at these regions in more detail for the second quarter, the company said it had plenty of activity in North America, its largest regional market (accounting for 36% of Q2 sales). DTLR and Shoe Palace took over the operations of 198 City Gear stores on 1 June; its new JD/Finish Line e-commerce platform went live in H1; and Shoe Palace’s Morgan Hill distribution centre (west coast of the US) went live in May, with JD/Finish Line planning to go live at the end of this year. This will make Morgan Hill the JD Group’s first multi-fascia distribution centre, “unlocking significant improvements in speed to store replenishment and online fulfilment”.
Its performance in the market was “resilient”, led by JD and DTLR, against strong Q2 comparatives. And it saw a “good performance in newer footwear lines (following a shift in the product launch schedule from Q1, as previously highlighted), partially offsetting the impact of key product lines being at the end of cycle”.
It also saw a “strong performance in apparel, albeit a smaller proportion of our category mix in North America”, and a “much improved overall online performance, supported by a better online range and focused marketing”.
In Europe, its group Heerlen distribution centre (in the Netherlands) “continues to ramp up”, and is on track to launch automation this year (for stores, with online to follow in H1 next year).
Europe is its second-largest regional market at 34% of sales with the UK third on 26% of sales. That said, the UK is hugely significant given that it contains a much smaller number of consumers than North America or Europe and therefore punches above its weight per head.
Both Europe and the UK faced difficult comparisons with last year when the Men’s Euros football tournament boosted sales of replica kits and saw healthy in-store cross-selling. Last year also saw strong sales of athletic footwear for women that were difficult to replicate.
But it talked up a “resilient underlying performance in apparel, supported by a strong product offer” and said footwear performance in both regions was supported by newer footwear lines (especially performance-based) and value-oriented footwear.
It also said it maintained in-store pricing disciplines in both regions. Controlled price investments were made in the online offer to boost its competitive position and increase engagement with online customers. This was reflected in higher European online traffic and conversion in Q2.
As for openings globally for the first half as a whole, it opened new JD fascia flagship stores in the UK (Trafford Centre, Manchester), North America (Las Vegas and Vancouver) and Asia Pacific (Melbourne), with “positive early learnings and strong results in particular from the Trafford Centre store”.
View from the top
CEO Régis Schultz said of all this: “We are making strong progress in developing our omnichannel customer proposition, store footprint and supply chain, and we are controlling our costs and cash effectively.
“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.
“We are well placed to continue growing our market share in the key growth regions of North America and Europe, and confident about the medium-term growth prospects for our industry.
“Reflecting this, we are reaffirming our commitment to enhanced shareholder returns, and announcing today a new £100 million share buyback following the successful completion of the first £100 million programme last month.”
Copyright © 2025 FashionNetwork.com All rights reserved.
NITMA president Sidharth Khanna warned that the current inverted duty structure—where polyester staple fibre (PSF) is taxed at 18 per cent and polyester spun yarn (PSY) at 12 per cent while fabric is at 5 per cent—is unworkable for spinners. He urged a cut in PSF and PSY rates to 5 per cent to align with fabric.
India’s textile sector is under strain as steep US tariffs take effect today.
The Northern India Textile Mills Association (NITMA) has urged the GST Council, meeting on September 3–4, 2025, to address the inverted duty structure in the man-made fibre value chain by reducing GST on polyester staple fibre (18 per cent) and polyester spun yarn (12 per cent) to 5 per cent, aligning with fabric.
According to Khanna, the present system burdens the industry with blocked working capital in GST refunds, unutilised input tax credits, administrative delays, loss of state SGST incentives, and unfair competition from imports.
“This is a critical moment for India’s textile sector. Decisive action to remove the inverted duty structure will not only counteract the impact of US tariffs but also unlock growth and investment across the MMF value chain, thereby making this event a blessing in disguise,” Khanna stressed.
Fibre2Fashion News Desk (KD)
Published
August 28, 2025
A Deutsche Bank report this week has sent the share prices of a number of UK retailers down on the back of falling consumer confidence, and it looks like retailer confidence is low too if the latest CBI retail report is a guide.
First, a quick look at that Deutsche Bank report. It showed UK consumer confidence at a post-pandemic low and raised fears that autumn will be tough for discretionary retailers. Big names such as Next, M&S and Primark owner ABF saw their share prices falling with ABF’s price down as much as 6% in recent days.
It coincided with the latest CBI retailer survey that showed retail sales volumes “fell at a strong pace in the year to August, extending the downturn to an 11th consecutive month”.
That said, the business body reported retailers expecting the pace of decline to ease in September. So perhaps those share price falls may be reversed soon?
Regardless, the CBI report wasn’t exactly upbeat. It said weak demand and gloomy sentiment continue to weigh on retailers’ investment and hiring plans. Price pressures remain elevated, with selling prices rising at their fastest rate since November 2023.
Year-on-year retail sales volumes fell at a strong pace in August with a weighted balance of -32% from -34% in July. Sales are expected to decline at a slower rate next month (-16%).
First though, an explanation. Those figures don’t mean that the volume of sales fell by 34%. Instead, the weighted balance showed 34% of retailers saying their sales fell to one degree or another.
Back with the report, retail sales for the time of year were judged to be “poor”, to a somewhat greater extent than in July (-19% from -10% in July). Next month’s sales are set to remain below seasonal norms to a similar degree (-20%).
Sentiment among retailers remained poor, with their business situation expected to deteriorate over the coming quarter, but to a lesser extent than last quarter (-10% from -29% in May).
Retailers also expect to reduce capital expenditure over the next 12 months (compared to the previous 12) to a slightly lesser degree than in May (-42% from -47% in May), but intentions remain poor by historical standards (long-run average of -3%).
Meanwhile retail employment continued to decline at a broadly unchanged rate in the year to August (-14% from -15% in May). Headcount is expected to fall at a slightly quicker pace next month (-19%).
And the survey showed retail selling prices rose in the year to August at the fastest rate since November 2023 (+65% from +35% in May). Retailers anticipate selling prices to increase at a relatively slower pace in September (+43%).
Online retail sales volumes were broadly flat in the year to August (+3% from +4% in July) but are expected to contract at a fast rate in September (-35%).
Martin Sartorius, CBI Principal Economist, said of this: “Retailers endured another tough month in August. Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector. This downbeat outlook is reflected in firms’ plans to scale back investment and hiring.
“The government’s fiscal decisions are continuing to bite, and retailers’ struggles send a clear signal: business cannot be asked to balance the books again at the Autumn Budget. Building business confidence through delivery must be the priority — starting with a rethink of the Employment Rights Bill, which risks piling on unnecessary costs and holding back jobs and investment.”
Copyright © 2025 FashionNetwork.com All rights reserved.
Published
August 28, 2025
Central London’s department stores continue to attract brands for pop-ups and permanent spaces with Selfridges, Harrods and Liberty all adding key names recently.
Luxury lifestyle brand Smythson of Bond Street has opened a new concession in the latter. It’s in Liberty’s homewares department on the third floor. The brand’s signature diaries, notebooks, and stationery, along with a selection of leather accessories and a curated edit of the brand’s bestselling bags are all on offer with personalisation also available.
The brands have developed an exclusive limited-edition range of Smythson x Liberty products with the first collection having just launched. There’s a selection of signature notebooks and diaries in Liberty Purple, Smythson’s Nile Blue, and a seasonal Coral colourway, each lined with a Liberty silk in coordinating colours. The second edit, launching in November, will feature a range of bestselling accessories.
Meanwhile UK-based padel apparel brand Pulco has debuted at Harrods, becoming the store’s first-ever padel clothing label, underlining the sport’s surging popularity.
Products on offer include the key Aircon shirt made from an ultra-lightweight, Italian-engineered fabric “featuring a breakthrough weave that rapidly wicks moisture from the inside out, delivering unrivalled breathability and comfort in play”.
But as well as performance-wear, there’s a full lifestyle offering “blending elevated athletic apparel with understated, off-court elegance”. That means shirts, shorts, hoodies, jackets, T-shirts, sweatpants, caps, socks and more. Retail prices range from £10 up to £165.
And back in the West End, Samsøe Samsøe has moved to a new space within Selfridges that presents the Scandinavian brand’s contemporary womenswear “within the universe of its experiential design”. The pop-up revolves around the AW25 collection that also inspires the space, “which emulates the immersive ‘Radiant Connection’ exhibition” that Samsøe Samsøe introduced the collection with during Copenhagen Fashion Week.
Set against the backdrop of the exhibition’s set design and illustrated by the lookbook imagery of the season, the pop-up “becomes illuminated with the lime green shade that defines the visual identity” of the collection.
The brand said the pop-up is a “next step within Samsøe Samsøe’s ever-increasing focus on the UK market” and should help it reach new consumers.
Copyright © 2025 FashionNetwork.com All rights reserved.
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