(Aug 20): JD Sports Fashion plc cut its profit outlook after weaker-than-expected sales of sneakers in the second quarter, as its customers grapple with cost-of-living pressures and pull back on discretionary spending.

The retailer now expects profit before tax and adjusting items this year of between £700 million (RM3.86 billion) and £800 million, according to a statement on Thursday, down from its previous guidance of as much as £850 million.

The shares slumped as much as 11% in early London trading, the most intraday since May 2025. They’re down more than 60% from their peak in 2021.

Chief executive officer Régis Schultz has presided over a difficult period as the boom for athletic-leisurewear slowed. JD has previously warned about the impact of higher unemployment among its young shoppers, and has also been hit by struggles at key supplier Nike Inc. 

“The broader outlook for the sports fashion sector is challenging and sales trends are currently muted,” RBC Capital Markets head Richard Chamberlain said in a note. “There continues to be disposable income pressure on JD’s core younger customer base, and the competitive environment remains challenging.”

Like-for-like sales fell 3.1% in the 13 weeks ended Aug 1, driven by a slump of nearly 7% in North America. They fell 2.7% in Europe, and rose slightly in the UK.

JD Sports expects tough trading conditions to persist in the second half. Demand has been fading for end-of-cycle footwear lines, it said, as trainers supplied by Nike and Adidas lose popularity over time, and are replaced by newer styles.

The company has tried to strengthen its position in North America and Europe in recent years, acquiring retailers Hibbett and Courir.

This month JD appointed Peter Agnefjäll, the former president and CEO of IKEA Group, as chair to help oversee the retailer’s turnaround. It came after the surprise exit of former chairman Andy Higginson following a reported boardroom struggle over Schultz’s future.

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