Chief executive Régis Schultz said the Chancellor’s last budget had already piled pressure on retailers by raising staff expenses, creating “tension around unemployment”. He urged Reeves not to repeat the move in November’s Budget.
“We’re starting to see unemployment going in the wrong direction and that is really worrying, especially for us, because the young customer is the first one to be impacted,” he told The Times.
The FTSE 100 retailer reported a 13.5% fall in first-half profits, weighed down by weakness in the US market, where it faces both consumer caution and uncertainty over Donald Trump’s new tariffs. Still, JD stressed the impact of tariffs would be limited in the short term, with less than 10% of its American sales directly exposed.
Group-wide sales climbed 18% to £5.9bn in the six months to August 2, as demand for “running silhouette” trainers fuelled growth, with brands such as Hoka, On Running and Adidas Evo among top sellers. Operating profit dipped 8.2% to £369m, though statutory pre-tax profit rose to £138m thanks to a bounce from last year’s one-off hit in Derby.
JD said it expects to hit full-year targets despite “continued pressure on consumer finances, elevated unemployment risk, and the ongoing transition in the footwear cycle.” Schultz added that younger shoppers were still spending: “If the product is good, the price is not an issue.”
The UK’s biggest sportswear retailer has been through a turbulent period, with shares falling 42% in the past year amid a slowdown in athleisure and supplier problems at Nike. Still, Schultz said he believes Nike “still has the magic” and JD is betting big on the global running boom to drive Christmas sales.
Amy Ingham
Amy Ingham is a reporter at Business Matters, covering UK business news with a focus on breaking news, business policy, late payments and insolvency. She joined the magazine in 2026 after completing the NCTJ Diploma in Journalism at Harlow College's journalism school. Her recent reporting includes British Steel's nationalisation and its impact on SME suppliers, the decline in late payments by large firms, and Insolvency Service director disqualifications. Reach her at aingham@cbmeg.co.uk.
