1H results reflect more challenging consumer environment in key markets and headwind from NIKE’s reset strategy For the 6 months to end July, JD Sports has reported an 11.8% decline in 1H PBT to £351m (Visible Alpha consensus £374m; INVe £371m) versus 1H25 £402m. This is roughly in-line with guidance given in August for 1H profits to be c40% of FY. The company has already pre-reported that Group organic sales grew 2.6% with LFL sales down 2.5%. Group sales including acquisitions were up 18% to £5.9bn. A flat 1H DPS of 0.33p has been declared. 1H results reflected a more challenging consumer environment across its key markets and a headwind from NIKE’s reset strategy, with volumes in new innovation not yet high enough to offset planned reduction in key historic franchises (Jordan, Dunk & AF1). JD management’s focus remains on tightly controlling costs and cash. New RDC in Europe (Heerlen set to launch automation in coming weeks) and US (go live by end of year) on-track and expected to unlock significant efficiencies. By region, US reported 1H EBIT of £181m (down 8%), Europe £53m (up 8%), UK £111m (-17%) and Asia Pacific £24m (flat) FY guidance reiterated While management remains cautious on the 2H economic outlook, it has reiterated guidance given in August that FY PBT before tax and adjusting items will be in line with current market expectations. Limited impact is expected from US tariffs in FY26. Current company-compiled consensus is £878m with a range of £853m to £914m (INVe £914m). Valuation reflects short term market issues JD Sports’ shares are down 5%/up 23%/down 7.6% over 1 mth/3 mths/YTD and valued on a CY26E PE of 6.6x with the second £100m share-buyback programme announced in August ongoing. Valuation reflects short term concerns over tariffs and general economic slowdown in all its key markets. Any benefits from NIKE’s reset are likely to be next year’s story, with potential for JD’s profits to start recovering in FY27, helped by management’s current focus on driving better efficiency and integrating its recent acquisitions. JD is highly cash generative, with a leading global market position, and we believe it has attractive long-term US and European growth opportunities which are being overlooked