Back in May, sports kit retailer JD Sports Fashion (JD.) posted an impressive set of results for the year to the start of February but cautioned the outlook for the year to February 2026 was clouded by the potential impact of tariffs.

Revenue for the 12 months to 1 February 2025 was up 12%, with organic sales up 6% or more than double the market growth, while the gross margin was steady at 48% as the firm stuck to its full-price strategy in what it described as an increasingly promotional apparel market.

Following the ‘Liberation Day’ tariff announcement, and in the face of slower-than-expected market growth, the firm set out new strategic and capital allocation plans with a focus on improving shareholder returns, starting with a double-digit increase in the dividend and a £100 million share buyback.

At the time, the company said trading in the first quarter of the year had been in line with its expectations, despite a ‘volatile’ market and uncertainty surrounding US tariffs, and it was confident it could continue to outperform its peers, improve profit margins and create ‘significant’ value for shareholders.

Therefore, when the company posts its interim trading update on 27 August, investors will be keen to hear how the second quarter has panned out, whether the firm has any clarity on the impact of US tariffs, and if it is sticking with its previous forecast of around £920 million of pre-tax profit for the year to the start of February 2026.

At the time, that forecast was below the middle of the market’s range of expectations (£880 million to £980 million) and it was based on a dollar/pound exchange rate of $1.31.

Since then, the mid-range of estimates has dropped some 5% to £887 million, while the pound has since risen towards $1.36, which would imply an impact of around £15 million. 

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