JD Sports Fashion PLC (LSE:JD.) fell back in early trading after it reported a slowdown in sales growth in May and a "softening" in North American markets.
The sports retailer said sales growth in May of 8% was below the 15% reported in the first three months of the current financial year although it stressed this was "in line with management expectations and reflects tougher comparatives in the prior year as the supply chain normalised and the availability of product improved."
JD said the positive trends have continued through June in the UK, Europe and Asia Pacific but this growth is partially offset by "some softening" in North America.
"Inventories in our businesses in North America are at normal levels and we will be no more promotional than we need to be to remain competitive," the company said.
The FTSE 100 retailer said it still expects full-year pre-tax profit for the year to February 3, 2024, to be in line with the current consensus expectations of £1.04bn.
Analysts at house broker, Peel Hunt said: "The US performance will probably catch the headlines but Europe and the UK are in rude health and have picked up any bottom line slack.
"JD continues to outperform all of its major competitors and the shares discount far too much bad news, in our view."
Peel Hunt reiterated a 'buy' rating, as did Shore Capital.
"While conscious of the macro backdrop challenges, we maintain our Buy stance on JD due to its strong structural position: the company’s robust balance sheet allows it to outinvest its peers, particularly in the US market," the analysts at Shore Capital said.
JD shares fell 4.7% to 139.75p.