# Rising unemployment hitting shopper confidence, says JD Sports

By Aarin Chiekrie — 2025-11-20

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “JD Sports’ third-quarter performance was largely as expected, with recent acquisitions flattering performance and helping total sales rise by 8.1 per cent.

“Stripping out these acquisitions, like-for-like sales continued their downward trend, moving 1.7 per cent lower against a tough market backdrop.

“Trading across the UK remains particularly weak, with recent changes to employer taxes and minimum wages bringing a handful of extra costs and challenges.

“Across the pond, the recent acquisition of Hibbett cemented the US as the group’s largest region by sales.

“Promotional activity among peers to help clear stock remains at elevated levels, weighing on JD’s performance who have chosen to stand firmer on pricing.

“While like-for-like sales remain in negative territory, they’ve picked up from the first half as trends here continue to improve.

“Despite improving trends, JD has thrown caution to the wind regarding its near-term outlook, citing weaker macroeconomic and consumer data points as the reason for cutting its full-year profit guidance.

“While that’s disappointing, the longer-term opportunity ahead looks promising given its strong market position.

“Trading at just 6.3 times next year’s earnings, the valuation offers plenty of upside potential if it can return to growth in key markets.

“And if investors are patient enough to ride out some uncertainty over the next couple of years, it could prove to be a very attractive entry point.”

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