Following last week’s surprise news that Dick’s Sporting Goods would acquire Foot Locker in a deal worth $2.4 billion, JD Sports chief executive officer Régis Schultz is sounding off on the deal.
“We see [the acquisition] as a positive,” Schultz told analysts on the company’s fiscal 2025 earnings call on Wednesday. “I think that competing with a distressed retailer [in reference to Foot Locker], and not knowing what they are doing, it’s not a great place to be. And I think we have seen that through discounting. [There was] erratic discounting at the end of the quarter.”
Pressed further from another analyst, Schultz said that he hopes the merger will alleviate some of the pressure on short-term trading for Foot Locker, which should help them be more disciplined with discounts and promotions on product.
“If it’s good for the market, it’s good for us,” the JD CEO added. “And having a competitor is always great. It forces us to be better and pushes us.”
As for Dick’s Sporting Goods, Schultz said that the company “respects” its rival. “[Dick’s] is a great operator,” he said. “They are a full-price operator. So, I think that it will put the market in a much better position. And I think that having a competitor who has the balance sheet to invest in store, to invest in the proposition, to be disciplined, I think it’s the best thing for the market.”
During Wednesday’s call, the CEO also took time to blast the U.S. President Trump’s immigration policy for having a “negative impact” on its Shoe Palace banner.
“As you know, Shoe Palace is targeting the Hispanic customer,” Schultz told analysts on Wednesday. “We have seen a huge decline in traffic, which I think is telling. I think the online business has been okay. But you can definitively see the impact from the immigration policy on Shoe Palace.”
This news comes the same time JD Sports reported revenue in fiscal 2025 of 11.46 billion pounds, an increase of 10.2 percent from 10.40 billion pounds in 2024. Profit before tax and adjusting items was 923 million pounds, a 4 percent decline from 961 million pounds the prior year.
By category, footwear continued to perform strongly with revenue growth of 15.2 percent to 6.82 billion pounds in 2025. Schultz noted that the company was able to switch its focus successfully from retro basketball to retro football and skate terrace styles throughout the year.
As for apparel, revenue in the category grew 4.2 percent to 3.55 billion pounds, while accessories revenue grew by 4.8 percent to 702 million pounds. According to JD, footwear makes up 60 percent of its sales, while apparel accounts for 31 percent and accessories at 6 percent. “Other” categories accounts for 3 percent and includes outdoor living equipment and gym memberships.
By region, JD noted that all geographies grew revenue in the period other than in the UK, which was impacted by non-core divestments made over the last two years. For the year, revenue in the UK declined 4.1 percent to 3.21 billion pounds, while Europe revenue increased 9.5 percent to 3.51 billion pounds. North America revenue increased 27 percent to 4.24 billion, and Asia Pacific revenue increased 0.4 percent to 501 million pounds.
The company noted that North America generates 37 percent of total revenue, while Europe accounts for 31 percent, the UK accounts for 28 percent, and Asia Pacific makes up 4 percent.
Looking ahead, Schultz said that overall trading in the first quarter of the new financial year has been in line with our expectations in a volatile market.
In Q1 2026. organic sales growth was 3.1 percent, driven by a 5.1 percent contribution from new space. Like-for-like sales were down 2.0 percent and gross margin was in line with the prior period.
“Despite this volatility, and uncertainty surrounding the impact of U.S. tariff changes, we look forward into the medium term with confidence that we can continue to outperform the market, improve our profit margin and create significant value for our shareholders,” Schultz noted.
