JD Sports warned investors of lower-than-expected profits for the full year, citing ongoing cost pressures and weakening demand in key markets. The sportswear retailer now anticipates its full-year profit before tax and adjusted items to fall between £700 million and £800 million, down from a previous forecast range of £750 million to £850 million.

The company pointed to challenges during the second quarter, including subdued footwear sales in North America and a highly promotional market environment exacerbated by broader cost-of-living pressures. These factors contributed to softer sales growth, highlighting the difficulty JD Sports faces as it navigates a complex retail landscape.

JD Sports, a constituent of the FTSE 100, has encountered several headwinds in recent years. The fallout from the COVID-19 pandemic has been compounded by inflationary pressures and a shift in consumer spending habits. Additionally, the company’s reliance on Nike, which accounts for nearly 50% of its sales, has exposed it to the impact of a slowdown in product innovation from the sportswear giant.

Market analysts and investors will be closely monitoring the steps taken by Régis Schultz, JD Sports’s chief executive, as he seeks to restore momentum in the business. Schultz’s strategy and operational decisions will be critical in addressing the headwinds and positioning the company for more stable growth in the periods ahead.