JD Sports Fashion is shifting its focus towards the US market for significant turnover growth.
- CEO Régis Schultz projects the US to account for 45% of JD Sports’ turnover by 2025.
- The company plans continued expansion with new store openings in the US and potential exploration into South America.
- Recent reports indicate robust growth in North America and Europe, outperforming the UK figures.
- JD Sports maintains strong promotional discipline to support gross margins amid volatile market conditions.
JD Sports Fashion is actively targeting an increase in its market share in the United States. According to CEO Régis Schultz, the US market is expected to constitute 45% of the company’s turnover by the end of 2025. This strategic shift highlights the brand’s focus on expanding its presence in what it perceives as a highly lucrative region. Schultz also indicated potential future ventures into the South American market.
The UK market, regarded by Schultz as more mature, currently accounts for 20% of the company’s turnover. In contrast, the European market contributes around 30%. Although the market dynamics differ across these regions, JD Sports is achieving notable market share gains beyond the UK. The company’s growth strategy seems poised to capitalize on emerging opportunities in international markets.
Recent performance data from JD Sports indicates a positive trend, particularly in North America and Europe. The company reported a strong growth rate of 5.7% in North America and 3.0% in Europe during the first half of the year. Conversely, the UK market showed substantial improvement on a quarterly basis.
In its latest financial report, JD Sports highlighted a 2.4% rise in like-for-like sales alongside a significant 8.3% increase in organic sales. The company attributes its quarter-on-quarter performance improvement primarily to the efficacy of its multi-brand operating model and favorable year-on-year comparisons.
Despite volatile overall market conditions, JD Sports has managed to maintain effective promotional strategies and proactive inventory management. This approach has been crucial in sustaining gross margins, which were reported at 48.4%—a slight decrease from the previous year primarily due to apparel and online sales in the UK.
JD Sports Fashion is strategically shifting its focus towards the American market to drive future growth, demonstrating a strong dynamic in adapting to global opportunities.
