JD Sports saw its shares tumble by more than 20 per cent on Thursday following news that the sportswear retailer had lowered its full-year profit forecast.

In a trading update, the company said that high levels of “promotional activity” combined with higher costs and subdued consumer spending in the prior quarter had impacted its sales.

As a result of the weaker than expected trading period, JD Sports now expects pre-tax adjusted profits of between £915 million and £935 million for its financial year ending 3 February. This is significantly down from its previous forecast of £1.04 billion.

The company added that it expects full-year organic revenue growth of about 8 per cent, down from the 12 per cent growth posted last year.

Commenting on the news, chief executive Régis Schultz said: “Our key markets have seen increased promotional activity during the peak trading season, driven by a more cautious consumer, but we continue to grow market share.”

The news comes days after Nike announced its plans to cut $2 billion in costs over the next three years as a result of cooling demand in China and Europe.

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