Home›US Markets›Equities›JD Sports warns on profits as incremental cost pressur…

JD Sports warns on profits as incremental cost pressures hit trainer sales

The company expects underlying pre-tax profit of £700 million to £800 million for the year, after previously forecasting £750 million to £850 million, and its shares fell 14% on the update.

Reported · Written up by our desk · Equities

JD Sports delivered another profit warning, citing weaker performance in demand for its “high-heat footwear product,” and pointed to incremental cost of living pressures as the backdrop for softer trainer sales, according to the Guardian Business. The retailer said it now expects to generate between £700 million and £800 million in underlying pre-tax profit for the financial year, narrowing from its prior range of £750 million to £850 million. The update was also tied to the view that the market remains “promotional,” meaning discounting is continuing to weigh on results.

The report said the warning was especially disappointing in a World Cup year, when JD expected more general “sporty buzz” for its global business. It noted that Nike and Adidas have also shown tepid form, with analysts estimating Nike and Adidas together account for slightly more than half of JD’s sales.

JD’s shares dropped 14% after the announcement. The Guardian Business also highlighted that this was the third profit warning since early 2024, and it raised concern that the broader athleisure trend may not be returning at the same level as in prior years.

More like this

Sources