JD Sports announces new buyback despite falling sales
JD Sports has announced a new share buyback programme despite a drop in like-for-like quarterly sales.
The FTSE 100 company said it would invest £100m into the programme, which it said reflects “confidence in medium-term industry growth, our ongoing market share gains and focused execution”.
This is despite a three per cent drop in like-for-like sales in the 13 weeks to August 2, driven by a 6.1 per cent drop in the UK and a 2.3 per cent drop in North America.
The programme, which JD’s board said “represents a compelling return on equity given JD’s current share price levels”, follows another recently-completed £100m buyback.
The company’s share price has fallen by more than half since its 2021 peak, and has dropped a third in the last year.
JD Sports troubles
JD has been affected by troubles at Nike, which has had an overhang of stock as demand shifts from classic trainers to upstarts like Hoka and On, as well as low consumer confidence.
It has also previously warned that visibility in US trading is uncertain due to the impact of Trump’s tariffs, which have hit the goods-producing Southeast Asian countries that supply the group.
However, the company expects profit this year to be in line with market expectations, with no direct material impact from tariffs.
The current market consensus for 2026 profit before tax is £885m, with a range of £852m to £915m.
JD Sports said it will “continue to monitor” the “ever-changing landscape” around tariffs, providing a further update in its half-year results on September 24.
CEO Régis Schultz said: “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.
“In general we see a resilient consumer, albeit very selective on their purchases.
“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.”