JD Sports Cuts Profit Forecast as Consumer Spending Weakens

JD Sports has lowered its full year profit forecast as rising living costs and weaker consumer spending put pressure on sales of trainers and other footwear. The British sports fashion retailer said shoppers remained cautious during the latest quarter, particularly in North America.

Like for like sales fell 3.1% in the 13 weeks to August 1. North America recorded the biggest decline, with sales down 6.8% compared with the same period last year. European sales also fell 2.7%. The UK, however, performed slightly better, with sales increasing 0.8%, supported by strong demand for football replica kits and improved sales of outdoor products.

JD Sports now expects full year pre tax profit to be between £700 million and £800 million, compared with its earlier forecast of £750 million to £850 million. The revised outlook unsettled investors, with the company’s shares falling as much as 14% on Thursday.

Chief Executive Regis Schultz said the retail market remained highly promotional as consumers faced greater financial pressure. He said North America was particularly challenging due to weaker demand for major footwear launches and the timing of back-to-school shopping.

The company, which operates around 4,800 stores globally through brands including JD, Blacks and Millets, also said heavy discounting across the footwear market affected demand for limited edition trainers. Consumers appeared more selective when buying higher-priced products.

However, there were some positive signs. Demand for running shoes and newer footwear styles remained stronger, helping offset part of the weakness in fashion led products.

JD Sports also highlighted higher fuel and energy costs as another factor affecting household budgets. Rising costs have added to pressure on consumers, making them more cautious about spending on discretionary products such as footwear and sports fashion