JD Sports has announced an increase in its dividend following a double-digit rise in revenue, driven by heightened demand from Europe and North America.
However, shares fell by over seven per cent as the retailer cautioned that the outlook for US trading remains uncertain due to the impact of tariffs, as reported by .
The company's overall revenue saw a 12 per cent growth to 拢11.45bn in the 52 weeks ending February 1, up from 拢10.39bn in 2024.
JD Sports will pay a full-year dividend of 拢52m, marking an 11 per cent increase on the previous year, and is set to initiate a 拢100m share buyback programme.
Pre-tax profit dipped by 2.9 per cent to 拢923m, down from 拢961m the previous year, which JD attributed to "due largely to the continued investment in infrastructure, controls and security", aligning with their January guidance.
Revenue from North America rose by 6.4 per cent to 拢2.4bn, while European revenue increased by 12.6 per cent to 拢2.2bn.
JD Sports has focused on expanding its store presence, with a net increase of 111 stores in North America during the year.
The company has recently faced challenges due to a downturn at key brand partner Nike, which has been grappling with excess stock as consumer preference shifts from classic trainers to emerging brands like Hoka and On.
Tariffs have also introduced a degree of uncertainty into JD's future, as most of its brand partners manufacture shoes in south-east Asian countries, which are yet to reach a trade agreement with Trump regarding his planned high tariffs on goods.
JD Sports is entering a recovery year
Analysts at Panmure Liberum have rated JD Sports as a 'Hold', as the company enters a recovery year.
Analysts commented: "The tariff impact, though manageable, keeps us on hold but long-term investors should be considering investing at this level."
Despite the uncertainty, Berenberg analysts have marked 2026 as a 'recovery year' for sales, suggesting five per cent in an average year over the medium term.
Chief Re虂gis Schultz stated that overall trading in the first quarter of the new financial year "has been in line with our expectations in a volatile market."
"Despite this volatility, and uncertainty surrounding the impact of US tariff changes, we look forward into the medium term with confidence that we can continue to outperform the market, improve our profit margin and create significant value for our shareholders."
