7th May 2026
JD Sports Fashion and much of the wider sportswear retail sector are seeing a slowdown in sales growth, especially in the UK and Europe. However, the picture is more of a “consumer slowdown and margin squeeze” rather than a collapse in demand.
JD Sports recently warned that profits are expected to fall again in 2026/27 after profits already dropped 6.4% last year. The company cited:
weaker consumer spending,
slowing demand for trainers and sports fashion,
lack of major product innovation from Nike,
rising youth unemployment,
and broader geopolitical uncertainty.
A major issue is that JD Sports depends heavily on Nike products, which account for roughly 45% of its sales. Nike itself has been struggling with falling market share, weaker demand in China, excess inventory, and fewer “must-have” shoe launches.
That matters because JD’s business model relies heavily on hype-driven trainer culture and premium sportswear demand among younger consumers. If fewer consumers are excited about new Nike launches, footfall and online demand weaken.
JD reported:
UK organic sales down 2.5%,
first-quarter like-for-like sales down 2.3%,
weaker online demand,
and falling store traffic in parts of Europe.
The slowdown is also affecting other sporting goods and sports-fashion retailers globally:
Nike shares have fallen sharply,
Adidas is recovering but still facing cautious consumer demand,
and retailers across Europe are relying more heavily on discounting to move inventory.
At the same time, newer brands such as HOKA, On Running and premium performance brands like ASICS are taking market share in running and performance footwear.
What is causing the slowdown?
Several factors are hitting the sector simultaneously:
Consumer pressure
JD’s core customer base is younger and lower-to-middle income consumers who are being squeezed by:
inflation,
rent costs,
higher energy bills,
and weaker job markets.
Consumers are becoming more selective about buying expensive trainers and sportswear.
Weak footwear cycle
Retailers say current shoe ranges are not generating the same excitement as previous Nike and Adidas product cycles.
The sportswear industry depends heavily on trend momentum and “must-own” products. Without strong launches, consumers delay purchases.
Discount-heavy market
Retailers are discounting more aggressively to clear stock, which hurts profit margins.
Even when sales volumes hold up, profitability weakens because companies make less per item sold.
Geopolitical and energy risks
JD Sports specifically warned that Middle East tensions and rising fuel and energy prices could increase logistics and operating costs.
That could eventually lead to:
higher retail prices,
weaker consumer confidence,
and lower discretionary spending.
How is this affecting the companies?
Profit pressure
Companies are seeing:
lower margins,
weaker earnings growth,
and more cautious forecasts.
JD Sports’ shares are already down significantly this year despite a recent bounce after earnings.
Store closures and restructuring
JD has been closing weaker stores while shifting toward a strategy of “fewer, bigger, better” flagship locations. The company closed 24 UK stores on a net basis last year.
Greater dependence on fewer brands
Retailers are becoming more exposed to supplier performance.
If Nike underperforms, retailers like JD feel the effect immediately.
Shift toward premium and performance products
One interesting development is that premium performance categories are holding up better than mainstream fashion trainers.
Brands such as ASICS and HOKA are benefiting from:
running culture,
wellness trends,
and consumers prioritising quality and performance over hype fashion.
Is this a long-term decline?
Not necessarily.
The sector still has strong long-term drivers:
health and fitness trends,
casual sportswear becoming everyday fashion,
growth in women’s activewear,
and global sneaker culture.
However, the industry appears to be moving out of the post-pandemic boom period into a more competitive and slower-growth phase.
The likely outcome is:
weaker companies struggle,
margins stay under pressure,
and retailers focus more on efficiency, exclusive products, and premium segments.
For JD Sports specifically, much depends on:
whether Nike successfully revives product innovation,
whether consumer spending improves,
and whether global economic conditions stabilise over the next 12–18 months.