JD Sports Faces Profit Slump Amid Market Challenges

JD Sports Fashion has reduced its profit forecast due to weaker trading in Britain and the U.S., along with intense competition. Shares dropped 12%, and revenue fell 1.5% amid volatile market conditions. The company emphasizes a cautious outlook for the financial year despite long-term strategic strengths.

British sportswear giant JD Sports Fashion has issued a revised profit forecast following struggles in its key markets, Britain and the United States. A competitive promotional landscape has further hampered sales, prompting a warning of a 'cautious' outlook from the retailer.

In early trading, JD Sports' shares plummeted 12% to reach an almost five-year low. The company, which boasts over 4,500 global stores, experienced a revenue decline of 1.5% for November and December, resulting in a profit forecast reduction by around 40 million pounds.

Facing market headwinds and diminished demand for Nike products, which form a significant portion of its sales, JD Sports is preparing for continued challenging conditions. However, analysts remain optimistic about its long-term strategy, as it refrains from aggressive discounting despite the current market climate.

(With inputs from agencies.)