JD Sports Profit Warning Highlights Tepid Trainer Market 2026

JD Sports has issued another profit warning as the trainer market remains tepid, with weak demand for high-heat footwear from major brands like Nike and Adidas. The company now expects underlying pre-tax profits of £700m-£800m for the financial year, down from its previous estimate of £750m-£850m. This marks the third profit warning since early 2024, and shares fell 14% on the news.

Why Is the Trainer Market Struggling?

The self-styled "king of trainers" is feeling the pinch as Nike and Adidas, which together account for over half of JD Sports' sales, fail to deliver innovative new designs. City analysts note that when these giants are on tepid form, JD Sports typically follows. The company also cited "incremental cost of living pressures," particularly in the US, and a persistently "promotional market" where discounting dominates.

Even a men's football World Cup year failed to generate the expected sporty buzz. Nike's share price is down a third this year, while Adidas recently admitted its World Cup marketing bet didn't pay off. US consumer spending has also slowed, with Walmart reporting its weakest sales growth in six years.

The Athleisure Trend Fades

Deeper concerns loom: the athleisure trend that boomed during the pandemic may not return to previous levels. The mini-boom for joggers and trainers has reversed, and the question is whether Nike and Adidas pushed prices too far or were outflanked by emerging competitors.

Comparing Nike and Adidas Performance

Both brands face headwinds, and JD Sports is caught in the middle. The company's reliance on these two suppliers makes it vulnerable to their struggles.

Key Takeaways for Investors

• JD Sports cut profit guidance for the third time in 18 months.
• Nike and Adidas account for over 50% of JD's sales.
• The athleisure trend is not rebounding to pre-pandemic levels.
• Promotional discounting remains a persistent challenge.
• US consumer spending is weakening, adding pressure.

What Does This Mean for the Retailer?

JD Sports must diversify its brand portfolio and reduce dependence on Nike and Adidas. The company could also focus on private labels or emerging athletic brands to regain momentum. However, the near-term outlook remains uncertain as the global trainer market stays tepid.

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