JD Sports Fashion PLC shares fell 6% to 81.6p as Deutsche Bank warned that the retailer faces a tougher 2026 than previously expected.
Analyst Alison Lygo cut her target price from 95p to 85p and warned of continued pressure on earnings.
The downgrade follows JD’s recent warning that trading over the key festive period had been weaker than hoped, prompting another cut to its profit guidance.
Lygo said the outlook for the year ahead remains subdued, and forecasts a second consecutive year of earnings decline.
While some upside could come from Nike Inc's recovery in lifestyle footwear and a renewed push from adidas AG on the Superstar trainers range, Deutsche sees deeper issues in JD’s core appeal.
The analyst highlighted a shift in fashion preferences, with female shoppers moving away from JD’s traditional style categories. There is a risk that male shoppers may follow suit, it was suggested, with brands like Timberland regaining ground.
JD’s heavy reliance on popular running-style sneakers may also be making its product offer less distinct, the report added.
“Overall levels of consumer volume demand within the category are challenged,” Lygo wrote, warning that even with brand momentum returning, demand softness could persist.