British sportswear and fashion retailer JD Sports has slashed £50m from its full-year profit forecast after experiencing a sharp sales decline in its key North American market, according to Euronext Markets. The company now expects pre-tax profits for the full year to range between £700m and £800m, down from its previous guidance of £750m to £850m.
JD Sports Lowers Profit Outlook by £50m Following North American Sales Slump
The announcement triggered an immediate market reaction, sending shares down by up to 14% in London-listed trading by Thursday afternoon to reach their lowest level since May, as reported by Theguardian. The retailer reported that group like-for-like sales fell 3.1% in the 13 weeks to August 1, following a 2.5% drop in its first quarter.
Regional Sales Breakdown and External Pressures
Geographically, performance varied widely across the retailer’s international network, which includes 4,800 stores worldwide alongside UK chains such as Blacks and Millets. North America took the heaviest blow with a 6.8% sales drop, driven by weaker consumer sentiment, a slower period for high-heat footwear products, and deferred back-to-school demand. Sales across Europe also dipped by 2.7%.
Conversely, the UK provided a rare bright spot with a 0.8% increase, bolstered by World Cup excitement driving sales of football replica kits and increased demand for outdoor gear from high street brands like Blacks and Go Outdoors. Asia Pacific sales rose by 1.4%.
Executive leadership pointed to broader macroeconomic challenges weighing on shoppers’ wallets. Chief Executive Régis Schultz stated, Trading in the second quarter remained tough,
noting that the company was forced to cut prices and offer promotions because our core consumer was impacted by incremental cost-of-living pressures.
Widespread inflation and higher fuel prices—exacerbated by the US-Israeli war on Iran, which effectively halted tankers passing through the Strait of Hormuz—further squeezed household budgets and consumer discretionary spending.
Market Challenges and Brand Over-Reliance
Industry analysts noted that the retailer’s struggles highlight deeper structural issues within the sportswear sector. Chloe Tedford-Jones, an apparel analyst at research firm GlobalData, observed that the company’s performance reflects a maturing sportswear market and an over-reliance on its biggest brand, Nike. Nike accounts for more than 40% of group sales and has faced an innovation drought in footwear
while resetting its business.
While JD Sports stocks alternative brands such as On and Hoka, analysts indicated that these labels currently lack the volumes required to offset the deficit left by Nike. Furthermore, the broader retail environment remains highly promotional, a dynamic that executives warn may persist into the second half of the year as consumers become increasingly selective about discretionary purchases.
Leadership Shifts Amid Ongoing Market Pressures
The profit downgrade compounds a turbulent period for the retailer, which has lost nearly a third of its stock market value over the last two years. Strategic disagreements recently led to the exit of chair Andrew Higginson at the annual meeting, following reports that he failed to convince the board to oust Schultz.
Peter Agnefjäll, the former boss of Ikea, is scheduled to step in as the new chair next month, making him the group’s fourth chair in just over four years. Darren Shapland, formerly chair of Poundland and Topps Tiles, has been acting as interim chair following Higginson’s departure.
