Shares in JD Sports languish near five-year lows, thanks to worries over tariffs, soggy consumer confidence, competition and softness in the athleisure market, where key partner Nike is yet to show much evidence of improved trading momentum.
For better or worse, the share prices of JD Sports and Nike “still look like they are joined at the hip”, say analysts at AJ Bell .
“November’s profit warning did not help, either,” they add. “Much will now depend upon how any guidance from chief executive Regis Schultz stacks up against downgraded analysts’ forecasts”.
For the year to January 2026, analysts are looking for adjusted pre-tax profit of £850 million, down from £923m last year, ahead of a recovery to between £850m and £900m in the year to January 2027.
B&M
B&M stock also sits at a low point amid long-term worries over the company’s exposure to lower-income bracket families, as well as competition from the big supermarkets and online rivals such as Amazon, Temu and Shein.
Profit warnings, the departure of the chief executive and chief financial officers, a dividend cut were topped off by autumn’s trading alert, when management admitted its operational systems had failed to correctly recognise £7m of freight costs in the first half, with the result that full-year income would undershoot estimates by some £40m.
Such an admission did considerable damage to B&M’s credibility and investors’ faith in its ability to reach the profit margin targets set by the board.
Such concerns have overshadowed new boss Tjeerd Jegen’s turnaround plan and shell-shocked shareholders will just be hoping for no further nasty surprises in this Christmas and third-quarter update.
DIARY
Monday 19 January
- Trading statement from Marshalls
- Davos World Economic Forum (all week)
- EU inflation
- Chinese Q4 GDP growth
Tuesday 20 January
- Full-year results from Watkin Jones
- Trading updates from Rio Tinto, Cranswick, QinetiQ, Kier and Gear4Music
- UK unemployment, wage growth and job vacancies
Wednesday 21 January
- Trading updates from Currys, Experian, JD Sports, Currys, JD Wetherspoon
Thursday 22 January
- Trading updates from B&M, Harbour Energy, Wizz Air and The Works
- UK Government borrowing
- US Q4 GDP growth
- US weekly initial unemployment claims
Friday 23 January
- Trading update from Record
- GfK UK consumer confidence survey
- Interest rate decision from the Bank of Japan
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