Jd sports shares fall despite hiking dividend on back of higher revenue

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 City AM. The company's overall revenue saw a 12 per

cent growth to £11.45bn in the 52 weeks ending February 1, up from £10.39bn in 2024. JD Sports will pay a full-year dividend of £52m, marking an 11 per cent increase on the previous year,

and is set to initiate a £100m share buyback programme. Pre-tax profit dipped by 2.9 per cent to £923m, down from £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 £2.4bn, while European revenue

increased by 12.6 per cent to £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 Régis 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." LIKE THIS STORY? WHY NOT SIGN UP TO GET THE LATEST BUSINESS NEWS STRAIGHT TO YOUR INBOX.