JD Sports Issues Profit Warning on US Sales Decline, Shares Plunge

British sportswear retailer JD Sports has cut its annual profit expectations following a notable weakness in US sales. The company reported a drop in demand, particularly in the footwear segment known as 'King of Trainers'. This development is considered one of the biggest challenges the retailer has faced recently. In its statement, the company said that sales in the US market declined faster than expected, negatively impacting overall profitability. JD Sports noted that slowing consumer spending and increased competition have pressured sales. As a result, management had to revise its previously announced profit targets for the 2024 fiscal year. Following the news, JD Sports shares traded on the London Stock Exchange fell by approximately 15%. This decline is among the sharpest daily losses the company has experienced recently. Investors have expressed concerns about the sustainability of the company's growth strategy, particularly its US operations. Analysts suggest that these challenges reflect a broader slowdown in consumer demand across the sector. Rising inflation and reduced purchasing power, especially in the sportswear and footwear segments, are negatively impacting retailers' sales performance. The company is expected to focus more on cost control and operational efficiency in the coming period. While JD Sports' warning has created general uncertainty in the retail sector, pressure on the company's share performance continues. Investors will closely monitor the company's third-quarter results and management's new strategic steps. This is not investment advice.