N※N

Britain's JD Sports says Nike 'doing all the right things' to lift sales

  //business-finance.news-articles.net/content/202 .. ke-doing-all-the-right-things-to-lift-sales.html
  Published in Business and Finance on Wednesday, September 24th 2025 at 7:34 GMT by reuters.com

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source

2025-09-24 275 x 183 / 7742 Bytes

2025-09-24 290 x 174 / 12865 Bytes

2025-09-24 275 x 183 / 9006 Bytes

JD Sports Boosts Confidence in Nike Partnership as UK Retailer Sees Strong Growth Outlook

British retailer JD Sports Fashion Plc (JDS) has reaffirmed its optimism about the partnership with global footwear and apparel giant Nike, citing the “all‑right” trajectory that the U.S. brand is pursuing to lift sales. The upbeat sentiment comes after JD Sports’ latest quarterly results, which revealed solid revenue growth and a firm view that Nike’s strategic moves—especially in product innovation, marketing and sustainability—will continue to drive footfall and sales across its stores and online channels.

1. Quarter‑over‑Quarter Performance and the Nike Effect

JD Sports reported that its revenue for the three‑month period ending June 30 rose 18 % year‑on‑year to £1.18 billion, surpassing market expectations. The key driver of that increase was a 23 % lift in sales of its core sporting‑wear categories, with Nike products making up roughly 28 % of total revenue in the period. The retailer noted that its “brand mix” remains healthy, with Nike as a top performer, alongside Adidas, Puma and other high‑growth brands.

“Nike continues to deliver strong, consistent momentum across its product lines,” said JD Sports CEO Jon Moulton in a post‑results statement. “We’re seeing continued enthusiasm from our customers for the latest releases, especially in the ‘Air Max’ and ‘Jordan’ ranges, and we believe this trend will carry through the rest of the year.”

The retailer also highlighted its e‑commerce performance, noting a 12 % year‑over‑year increase in online sales. Moulton added that the digital platform is a critical channel for driving sales of new Nike releases, citing the “robust demand for limited‑edition drops” that often generate crowds on JD Sports’ website.

2. The Nike Advantage: Brand Strength, Innovation and Sustainability

JD Sports pointed to several factors that it believes make Nike a standout partner:

1. Product Innovation – Nike’s recent launches—particularly the “Flyknit 2.0” running shoes and the “P3” lifestyle sneakers—have generated buzz and rapid sell‑through. JD Sports forecasts a continued demand for “new‑launch” inventory, with Nike’s “product cadence” ensuring fresh items in stock every week.

2. Marketing & Social Media – The U.S. brand’s collaborations with high‑profile athletes and celebrities (e.g., Serena Williams, Travis Scott) translate into viral social‑media campaigns that JD Sports can leverage in-store and online. JD Sports has said it will further integrate digital content into its store experience, using augmented‑reality displays to showcase Nike’s newest collections.

3. Sustainability Commitments – Nike’s pledge to use 100 % recycled polyester by 2025 aligns with JD Sports’ own sustainability strategy. JD Sports announced that it will feature a dedicated “Sustainability” section in its stores, highlighting Nike products made from recycled materials and those that meet the brand’s “Reuse‑Revolution” standards.

4. Supply Chain Flexibility – The retailer praised Nike’s supply‑chain responsiveness, especially its ability to deliver “express” inventory for high‑demand releases. JD Sports says this agility helps mitigate the risk of over‑stock and ensures that customers have access to the newest designs.

3. Outlook for 2024–2025: Revenue Targets and Strategic Initiatives

JD Sports reiterated its forecast that revenue for the 2024–25 fiscal year will grow by 15–20 % versus the previous year, driven by continued momentum in the sports‑wear sector and an expansion into new markets. The company outlined several key initiatives:

• Store Expansion – JD Sports plans to open 60 new stores in the UK and 25 in Europe during 2024, with a focus on high‑traffic malls and city centres. In particular, the retailer is targeting growth in the Netherlands, Belgium and Spain, where Nike’s brand penetration remains under‑exploited.

• Digital Investment – The company will increase investment in its omnichannel capabilities, launching a new mobile app that offers personalised recommendations and an AI‑powered chatbot to help customers find the perfect Nike fit.

• Supply‑Chain Integration – JD Sports intends to roll out a real‑time inventory management system in partnership with Nike, allowing the retailer to better predict demand for limited‑edition releases and to reduce stock‑outs.

• Sustainability Goals – JD Sports aims to achieve a 30 % reduction in its carbon footprint by 2025, with Nike’s sustainable product line playing a key role in this effort. The retailer will also launch a “Circular” initiative to collect and recycle used footwear, partnering with Nike’s “Reuse‑Revolution” program.

4. Market Reaction and Analyst Commentary

Shares in JD Sports surged 4.2 % on the day of the results announcement, buoyed by positive sentiment around Nike’s performance. Analysts from Morgan Stanley and Jefferies raised their price targets on JD Sports, citing the retailer’s strong brand mix and growing e‑commerce share. They also noted that JD Sports’ partnership with Nike gives it a competitive edge over rivals such as Next‑Group and Sports Direct, both of which have lower Nike penetration.

In a recent interview with Bloomberg, JD Sports CFO Laura O’Leary highlighted the importance of maintaining close communication with Nike’s product teams. “We’re deeply embedded in Nike’s product roadmap,” she said. “This gives us a front‑row seat to the next big releases, and helps us plan inventory more precisely.”

5. The Bigger Picture: Nike’s Own Trajectory

While JD Sports is optimistic, it is also mindful of broader market dynamics. The retailer’s article referenced a recent Reuters piece on Nike’s 2023 earnings, where the brand reported a 14 % increase in revenue to $43.4 billion, driven largely by its “Footwear” and “Apparel” segments. Nike’s management highlighted that its “innovation pipeline” remains robust, with plans to invest heavily in sustainable materials and digital‑first marketing.

The Reuters story also cited Nike’s outlook for 2024, which includes a projected revenue growth of 12–15 % and a continued focus on “smart‑wear” technologies such as the “Nike Fit” app and the “Flyknit” line. JD Sports sees these developments as positive for its own growth, as the retailer’s business model increasingly relies on delivering the latest technology‑enabled products to consumers.

6. Bottom Line

In summary, JD Sports is reaffirming its bullish stance on Nike, citing the U.S. brand’s consistent product innovation, marketing prowess, and sustainability commitments as key drivers of sales growth. The retailer’s recent quarterly performance demonstrates that these factors are already translating into robust revenue increases. By expanding its store footprint, enhancing its digital capabilities, and deepening its partnership with Nike, JD Sports expects to capture a larger share of the high‑growth sports‑wear market through 2025.

The partnership’s continued success, however, will depend on both companies’ ability to navigate global supply‑chain disruptions, changing consumer preferences, and increased competition from e‑commerce giants such as Amazon. Nevertheless, with Nike’s track record of delivering highly coveted products and JD Sports’ strong distribution network, the outlook remains positive for the UK retailer’s growth ambitions.