JD Sports CEO Régis Schultz says Nike’s troubles aren’t a cause for concern to the retailer

In a trading update for the first quarter, Nike said its sales dropped 10%. The global sportswear giant also withdrew its full-year forecast on the back of declining sales as it said “a comeback at this scale takes time”.

But for JD, which is one of Nike’s largest retail partners, Schultz insisted this is not a cause for concern.

When asked if he thinks the growth of newer brands like Hoka, On Running and New Balance is enough to offset the decline in Nike sales, Schultz said he does not just think it, but knows it to be true. 

He said: “It’s not only thinking. We demonstrate that because in the first half, we were up by 6.4% [in organic sales] and we have double-digit [growth] in the US.  

“So we are doing it, not just thinking about it. We are doing it. And that has been the case for the last 12 months. Our model is agile, multi-brand and we are delivering it.” 

Nike remains one of JD’s most crucial brand partnerships and Schultz confirmed the Nike Air Force 1 is still the most popular trainer it sells worldwide. 

“I think we see Nike coming back. Nike will be fine. Nike is a strong brand, so that’s only a question of time,” he said. 

The retailer said the completion of the Hibbett acquisition has cemented North America as JD’s largest region by revenue, representing around 40% of the group’s entire pro forma annualised group revenue. 

However, in its home market of the UK, sales fell – mainly due to weather-related issues such as a late summer affecting sales. But Schultz was more positive about the second half in the UK, all thanks to the wet weather. 

“Hopefully [a bounceback] will be there. It’s a good thing that it’s raining. Or more the cold weather to be fair, but that’s what we want,” he said.