JD Sports has reduced its profit forecast by £50 million as weak demand for new trainer designs and cost-of-living pressures squeeze sales. The retailer said it had experienced a slower quarter for "high-heat footwear product," referring to the failure of major global brands to produce popular new designs.
Nike and Adidas, which City analysts estimate account for slightly more than half of JD Sports' sales, have been performing poorly. As a result, the self-described "king of trainers" retailer has also struggled. The warning is particularly disappointing in a World Cup year, which was expected to provide a boost to the global business.
The company cited "incremental cost of living pressures," especially in the United States, as a headwind. JD Sports has also described the market as highly promotional, with discounting remaining dominant across recent trading updates.
