No surprises expected from FY25 results Having held a comprehensive update on the Group’s strategic progress just over a month ago (9th April), which included a trading update, these results are likely to be a relative non-event. Management confirmed FY25 adjusted PBT will be in-line with guidance of £915m-£935m. We forecast a 5% decline YoY to £915.6m with the disappointing results reflecting ongoing challenging market conditions in both the UK (30% of FY25E Group EBIT) & US (42% of FY25E Group EBIT) and heavy discounting/lack of innovation from NIKE, which has impacted the growth of the overall athleisure market. Expect to reiterate FY26 PBT guidance on a pre-proposed tariff basis Pre proposed tariff changes, management guided for FY26 adjusted PBT to be in-line with company-compiled consensus then of £920m (INVe £913.8m), which implies another year of no growth despite the benefit of acquisitions. Total revenues are expected to grow, helped by the annualization of the Hibbett & Courir acquisitions (adding c.10% to sales YoY), 4% new space contribution and negative LFLs. Plans are for c.150 new stores and c.100 conversions + relocations in the year, with c.50 closures, mainly in Eastern Europe. Market set to remain challenging near-term but shares offer material value over the long-term The share responded positively to the update (+24% over last month) on the group’s medium-term plans. Reflecting the expectation of slower ongoing market growth, management announced they would focus more on improving performance in the existing business, integrating the Hibbett & Courir acquisitions, lower capex plans (trending from 5% to 3-3.5% of sales) and implement a £100m share buyback programme. The group also announced the deferral of the Genesis buyout out to 2029/2030. It is difficult to see JD Sports’ profits recovering near term. The industry backdrop remains challenging not only from a macro perspective, but JD’s performance is also likely to be impacted over the remainder of FY26, at least, by NIKE’s reset plans. Trump’s proposed tariffs may not help NIKE’s reset from a US perspective either. JD’s valuation (CY26E PE c.7x) still implies a credibility issue. However, we believe investors are overlooking the strength of JD’s global market position and an element of medium-term recovery potential as well as attractive long-term growth opportunities in the US and Europe in particular.