Business · Singapore Bureau
JD Sports cuts profit guidance as US footwear sales disappoint
The British sports retailer has lowered its earnings outlook following weaker-than-expected sneaker sales in the second quarter. The downgrade sent shares sharply lower in trading.
LSN Singapore ·
JD Sports Fashion has slashed its profit guidance, citing softer-than-anticipated demand for footwear in its crucial US market during the second quarter. The revision prompted investors to sell down the retailer's shares, reflecting concerns over the company's near-term earnings trajectory.
The guidance cut underscores persistent challenges facing the global athletic retail sector, where consumer spending patterns have remained unpredictable. The US represents a significant revenue stream for JD Sports, making the region's performance critical to the company's overall financial health.
The second-quarter sales miss in sneakers suggests that demand for branded footwear may be moderating as consumers exercise greater caution on discretionary spending. This weakness arrived despite JD Sports' established market position and extensive product range across leading global brands.
The profit warning marks a setback for management, which had previously outlined ambitious growth targets. Investors will be closely monitoring upcoming trading updates to determine whether the weakness is temporary or signals a longer-term shift in consumer behaviour across key markets.