Recent downward momentum in JD Sports Fashion (JD.) has been exacerbated by the company’s latest disappointing update.

The firm announced on 21 November it now expects pre-tax profit for the year to January 2025 to be at the lower end of its original £955 million to £1.035 billion guidance range, news which sent the shares tumbling 16% to a two-year low of 95.2p.

JD blamed ‘increased trading volatility’ in October for the downgrade, highlighting a US slowdown and continued weakness in the UK, although chief executive Regis Schultz insisted his charge remains ‘well positioned’ for the upcoming peak selling season.

The firm witnessed much softer consumer demand and trading toward the end of the quarter due to higher levels of discounting and unseasonal weather, which would have affected demand for higher-ticket items.

While like-for-like sales were down in North America, the UK and Asia Pacific, they were up in Europe and JD Sports still managed to improve its gross margin by 30 basis points or 0.3% to 48.1%.

The stock was already facing pressure in anticipation of and off the back of a Budget which contained a double-whammy of an increase in employee national insurance contributions and the national living wage. 

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