JD Sports Fashion PLC (LSE:JD., OTC:JDSPY) shares slumped almost 11% after the sportswear retailer cut its FY2027 profit guidance, as weaker consumer sentiment and subdued footwear demand contributed to a sharper sales decline, particularly in North America.
The retailer now expects profit before tax and adjusting items of £700 million to £800 million, down from £750 million to £850 million previously, while free cash flow guidance remains unchanged at £460 million to £520 million.
The price move was reported in early London trading, against a previous close of 93.46p.
Group organic sales fell 1.3% in the 13 weeks to 1 August, compared with a 0.1% decline in the first quarter, while like-for-like sales dropped 3.1%.
North America, which accounted for 35% of Q2 sales, recorded a 4.5% fall in organic sales and a 6.8% decline in like-for-like sales. JD blamed weaker consumer sentiment, slower demand for high-heat footwear and the deferral of some back-to-school spending into August.
Trading was more resilient in the UK, where organic sales slipped 0.2% but like-for-like sales rose 0.8%, supported by apparel, accessories, football replica kit sales and improved Outdoor performance.
Europe posted a 0.4% organic sales decline and a 2.7% like-for-like fall, while Asia Pacific remained the strongest region, with organic sales up 10.2% and like-for-like sales 1.4% higher.
Chief executive Régis Schultz said trading remained “tough” as promotional activity, cost-of-living pressures and footwear product-cycle headwinds continued.
JD said inventory remained well controlled and first-half gross margin was in line with expectations. The group was in a net cash position before lease liabilities at 1 August and has started the second £100 million tranche of its £200 million share buyback.
