{"id":38869,"title":"JD Sports Shares Plummet as Retailer Slashes Profit Forecast Amid Market Volatility","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2025-01-17T04:43:34+00:00","modified":"2025-01-15T16:47:09+00:00","canonical_url":"https://stockmark.it/jd-sports-shares-plummet-as-retailer-slashes-profit-forecast-amid-market-volatility/","markdown_url":"https://stockmark.it/jd-sports-shares-plummet-as-retailer-slashes-profit-forecast-amid-market-volatility.md","json_url":"https://stockmark.it/jd-sports-shares-plummet-as-retailer-slashes-profit-forecast-amid-market-volatility.json","category":"Markets","categories":["Markets","Retail"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-76-2.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"Britain’s largest sportswear retailer, JD Sports Fashion, has witnessed its shares tumble to a five-year low after reducing its annual profit forecast amid challenging market conditions. The company now projects profits between £915 million and £935 million, marking a significant reduction from its previous guidance of £955 million to £1.03 billion.\n\nThe FTSE 100 company reported a 1.5 per cent decline in like-for-like sales during the crucial November and December period, with intense promotional activity from competitors impacting revenue performance. This announcement marks the second profit warning in just two months for the Manchester-based retailer.\n\nDespite maintaining healthy margins at 48 per cent by avoiding extensive discounting practices, JD Sports has faced mounting pressures from weakened consumer spending and challenges at Nike, which comprises 45 per cent of the retailer’s sales. The company’s footwear division demonstrated resilience, outperforming apparel lines, while growth in European and Asia Pacific markets helped counterbalance softer performance in UK and US territories.\n\nChief Executive Régis Schultz acknowledged the heightened market headwinds, adopting a cautious stance towards the new financial year. The retailer’s recent acquisitions, including the £452 million takeover of French sportswear retailer Courir and the $1.1 billion purchase of American rival Hibbett, have shown promising initial results despite the challenging environment.\n\nThe broader sportswear sector has experienced a notable cooling of demand following the pandemic-driven surge in activewear popularity. JD Sports, with its extensive network of 4,558 shops globally, continues to navigate these headwinds while maintaining its position as a dominant force in global sportswear retail.\n\nThe company’s shares closed down 6p, or 6.4 per cent, at 90¼p, reflecting investor concerns about the retailer’s near-term prospects in an increasingly competitive market landscape."}