JD Sports Shrugs Off Tariffs, Says Strained U.S. Shoppers Pose Bigger Risk

JD Sports is brushing off concerns about U.S. tariffs announced by Donald Trump, but CEO Régis Schultz says cash-strapped U.S. consumers could have a bigger impact on the retailer’s long-term growth.

Schultz said the sportswear giant should only see a “limited impact” from tariffs imposed by the U.S. President in the current financial year. The retailer’s “direct exposure” comes from its own-brand products, which account for less than 10% of its U.S. sales.

Schultz pointed out that the wider sportswear industry has adjusted to the tariffs by passing only a third of the costs onto consumers, with the other two-thirds absorbed by manufacturers, supply chains, and brands themselves.

“So far, so good,” he said on Wednesday after the retailer released its first-half earnings report. But he expressed caution about the longer term. “It’s more a question of how the tariffs will have an impact on U.S. inflation and the U.S. economy.”

JD Sports reported falling sales across all its geographical regions, with North America hit hardest, dropping 3.8% to £2.3 billion ($3 billion). North America is the retailer’s biggest market, accounting for 39% of its sales in the first half. The company’s U.S. operations span more than 45 states through its JD Sports, Hibbett, DTLR, Shoe Palace and Finish Line stores.

“In an environment of strained consumer finances and evolving brand product cycles, operating and financial discipline remains a core focus for JD,” Schultz said. “We are controlling our costs and cash well.”

The retailer said its total revenue came to £5.94 billion, a 20% jump that was largely credited to the recent acquisitions of Hibbett and French chain Courir.

Despite a 13.5% fall in adjusted profits to £351 million, JD Sports said it would stick to its full-year guidance.

Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, said: “A shift of focus from expansion to raising brand awareness and squeezing the most out of its existing store footprint is a welcome one, and while like-for-like sales are still in negative territory, there are early signs that sales trends are improving.”

JD Sports’ stock is down more than 40% over the last year, which Chiekrie said could prove to be “a very attractive entry point” if investors are patient enough to ride out some of the uncertainty over the next couple of years.

Shares of the retailer closed 0.7% lower on Wednesday at 87.9 pence. Analysts at J.P. Morgan had predicted a “muted stock reaction” after the release since results were broadly in line with expectations. The investment bank estimates that the stock is currently trading at a roughly 25% discount to its peers.

JD Sports forecast full-year profit before tax and adjusting items in line with analyst consensus of £878 million, down from the £923 million it generated in the year ended February 2025.

Barclays’ analysts expect the retailer to report £853 million. The bank said JD Sports needs to deliver further efficiencies to mitigate some of its rising costs, estimating that rising U.K. labor costs and technology investments will likely reduce the retailer’s operating income.

For now, tariffs remain a manageable headwind. But with consumer spending under pressure in its biggest market, JD Sports’ fortunes seem more closely tied to the wallets of U.S. shoppers than to Washington’s trade policy.