JD Sports has lowered its profit forecasts for the full year, citing cost-of-living pressures and widespread inflation as factors weighing on trainer sales. The sports fashion retailer, which includes brands like Nike and Adidas, reported that shoppers' wallets have been hit, leading to falling sales in key markets such as the US.
The company now anticipates pre-tax profits to be between £700m and £800m, a reduction from its earlier expectation of £750m to £850m. This news resulted in a 12% drop in JD Sports' London-listed shares on Thursday morning, reaching their lowest level since July.
Regis Schultz, the chief executive, stated that trading in the second quarter remained difficult, forcing the company to reduce prices and offer promotional sales. He noted that the core consumer was affected by increased cost-of-living pressures, including higher fuel prices.
Overall, JD Sports' like-for-like sales decreased by 3.1% in the second quarter. North America experienced the most significant impact, with sales falling by 6.8%, while sales across Europe declined by 2.7% during the same period. The UK was an exception, with sales of football replica kits boosted by World Cup excitement and increased purchases of outdoor gear from brands like Blacks and Go Outdoors.