JD Sports Struggles as Athleisure Trend Shows No Signs of Recovery - How Markets React?

JD Sports reported continued weakness in the trainer market, citing a lack of 'high-heat footwear' demand from Nike and Adidas. The company noted that when the two brands struggle, JD follows suit, as they account for slightly over half of its sales. JD now forecasts £700m-£800m in pre-tax profits, down £50m from its previous estimate, marking its third profit warning since early 2024. The share price fell by 14%, returning to 2019 levels. The timing of the warning was particularly disappointing given the men's World Cup year, which should have boosted sports-related demand.

Nike and Adidas's Strategic Struggles

■Nike's share price has dropped a third this year despite a poor performance in the last two quarters.

■Adidas's World Cup marketing bet failed to pay off.

■Walmart reported its slowest sales growth in six years, reflecting broader consumer caution.

JD's Leadership Crisis Under Pressure

■The exit of chair Andrew Higginson last month highlights tensions over strategy.

■Pentland Group's 55% stake complicates JD's governance structure.

■The company has tightened internal controls following past expansion success.

Markets are questioning JD's competitive edge and the long-term viability of the athleisure trend. Further analysis is needed on how Nike and Adidas's pricing strategies impact consumer behavior.