JD Sports cuts profit outlook as trainer sales slump amid cost-of-living squeeze

JD Sports announced a revision to its annual profit guidance, now expecting pre-tax earnings between £700 million and £800 million after earlier aiming for £750 million to £850 million. The company attributed the downgrade to weaker demand for trainers and other footwear, driven by broad inflationary pressures and higher fuel prices tied to the US-Israeli war on Iran, which has disrupted tanker traffic through the Strait of Hormuz.

Comparable sales fell 3.1% in the second quarter, with the steepest decline in North America at 6.8% and a 2.7% drop across Europe. In contrast, the UK saw modest growth thanks to heightened interest in World Cup replica kits and increased purchases of outdoor equipment from its Blacks and Go Outdoors brands. CEO Régis Schultz noted that the firm had to resort to price cuts and promotions to support its core customers. The news triggered a roughly 12% slide in the company's London-listed shares, taking the stock to its lowest level since July.