JD Sports has misplaced greater than a fifth of its inventory market worth after the retailer downgraded its full-year revenue forecast.
A buying and selling replace by the sportswear chain on Thursday revealed it now expects revenue earlier than tax and adjusted gadgets of between £915m and £935m in 2023/24.
The determine is down on earlier estimates of £1.04bn for the interval.
Shares in JD Sports plunged as little as 23% on Thursday morning following the forecast and have been nonetheless at the same stage at lunchtime.
Sportswear friends Frasers Group, which owns Sports Direct, Adidas and Puma additionally fell between 1% and 5%.
There was an additional knock-on impact on US sports activities manufacturers and retailers, with Nike down 1.5% and Foot Locker falling 1.4% in pre-market buying and selling.
JD Sports blamed components together with larger prices and weaker demand from “more cautious” buyers.
It additionally mentioned “milder weather” from the second half of September additionally had an affect on gross sales.
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The downgrade got here after the retailer reported like-for-like natural income development of 1.8% within the 22 weeks to the top of December, which it mentioned have been “slightly behind our expectations”.
It expects full-year natural income development to be round 8%, in contrast with the 12% final 12 months.
Jonathan Pritchard, a retail analyst at Peel Hunt, mentioned: “External factors are mostly to blame here.
“The client is cautious and on the lookout for a deal and with no particularly thrilling [sports fashion product] launches, it has been a dullish interval.”
JD Sports chief executive Regis Schultz said the chain had still made “good progress” and had opened more than 200 new stores in the last year.
He added: “Our key markets have seen elevated promotional exercise through the peak buying and selling season, pushed by a extra cautious client, however we proceed to develop market share.
“We are confident in our strategy and we continue to invest in our supply chain, systems and stores, supported by our strong cash generation and healthy balance sheet.”
The firm’s fortunes are available distinction to fellow excessive road retailer Next, which raised its revenue forecast on Thursday after reporting better-than-expected gross sales within the run-up to Christmas.
Source: information.sky.com”