Sales of trainers dive as cost of living pressures hit JD Sports performance
Inflation deterring shoppers from spending, especially in the US, says sportswear fashion chain Sports fashion retailer JD has slashed its profit forecasts as cost-of-living pressures, fuelled by the US war on Iran, weighed on sales of trainers. JD Sports, which sells a range of sports brands including Nike and Adidas, said widespread inflation had hit shoppers’ wallets, resulting in falling…
High street chain JD Sports is grappling with a decline in sales due to rising cost of living pressures, particularly in the US, where US-Iran conflict has reduced shoppers' spending, says CEO Régis Schultz. The sports fashion retailer has cut £50m from its profit forecast as inflation weighed on sales of trainers, notably the brand's core young customers.
Despite strong sales in the UK driven by football replica kits and outdoor gear, like-for-like sales fell by 3.1% in the second quarter, with North America suffering the biggest losses at 6.8%. JD's share price dropped 14% following the news, reaching a low since May. Analysts attribute JD's struggles to its heavy reliance on Nike, which continues to struggle due to its lack of innovation in footwear, and the need for the retailer to adapt to shifting trends towards outdoor gear and performance sports.
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