JD Sports Fashion PLC (LSE:JD.) shares fell 3.1% after a downgrade from Citi and a profit warning from Primark owner AB Foods.
Analysts at the US bank made the call on the back of a soft festive trading and 2025 earnings guidance downgrade from the sportswear retailer.
Like-for-like sales and organic sales forecasts were cut by Citi to 0.0% and 5.0% for 2025, from 1.1% and 6.4% before, with 2026 estimates also reduced.
This reflects weak consumer sentiment and "a promotional environment that JD has chosen to limit participation in", the analysts said, particularly in North America and UK, which means the gross margin forecast "therefore increases" 10 basis points to 47.8%.
The profit before tax forecast for 2025 was cut by 5% to £920 million, well below the consensus of £955 million, and towards the bottom end of the £915-935 million guidance range. The PBT forecast for 2026 is cut to 18% to £930 million.
Citi downgraded the stock to a 'neutral' rating, with a target price cut to 95p from 150p given the material estimate cuts, though the analysts noted that the shares now trade at around seven times their 2026 EPS estimates, well below their mid-teens five-year average.