JD Sports Fashion (JD.) had an awful start to the year with shares falling over 20% following an unscheduled trading update at the beginning of January.

The sports fashion retail group reported disappointing results for the 22 weeks to 30 December 2023 falling short of company expectations.

The company’s outlook doesn’t get any better.

The sports fashion retail group says full-year pre-tax profits will be up to 12% below the £1.04 billion guidance given last September.

The reason being is that consumers are just not buying non-essential items in a tough high interest rate environment, they are prioritising their spending on things they really need.

Plenty of other names in the retail sector have recently given similar messages about a slowdown in sales growth including Zara’s owner Inditex, H&M and ASOS (ASC).

Analysts at Shore Capital remain cautious about the sports fashion retail group even though the company enjoys a very strong balance sheet, growing market share, key brand relationships and quality stores.

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