Britain's JD Sports underperforms market rout on US exposure

Reuters

Mon, Apr 7, 2025, 3:12 AM 2 min read

LONDON (Reuters) - Shares successful British sportswear retailer JD Sports Fashion underperformed a banal marketplace rout connected Monday, reflecting some its dense vulnerability to cardinal spouse Nike and U.S. tariffs.

Ahead of a trading and strategy update scheduled for Wednesday, shares successful JD Sports were down 6%, taking losses implicit the past period to implicit 18%.

The FTSE 100 scale of bluish spot stocks was down 4% connected fallout from U.S. President Donald Trump's tariff announcement past week.

After past year's acquisition of the Hibbett chain, conscionable nether 40% of JD Sports' planetary income are made successful the United States. Nike products relationship for astir 45% of the group's sales.

Last week, Trump hiked duties connected imports from a wide scope of countries, including 54% connected goods imported from China and 46% connected goods from Vietnam.

JD Sports' vulnerability to U.S. tariffs is some nonstop and indirect.

Its nonstop vulnerability to U.S. tariffs is connected its ain statement products that are sold successful the U.S., overmuch of which is sourced from China. Analysts astatine PanmureLiberum estimation this to beryllium astir 4% of radical sales.

JD Sports besides has indirect exposure, arsenic the 3rd enactment brands it sells successful the U.S., including Nike, Adidas and On, are highly babelike connected Vietnam and China.

While the brands person worked hard to trim their U.S. sourcing vulnerability to China, they present person the occupation that Vietnam is besides nether precocious tariffs.

"There is simply a bully accidental that the interaction volition beryllium shared by the brands and the retailers similar JD ... but it is decidedly going to measurement connected assemblage volumes," the PanmureLiberum analysts said.

JD Sports had already warned connected nett successful January, aft weaker trading successful Britain and the U.S. and promotional enactment astatine competitors wounded sales.

Even earlier the tariffs, Nike warned past period of different 4th of income decline.

(Reporting by James Davey; Editing by Susan Fenton)