Shares of JD Sports Fashion plc fell roughly 2% on Wednesday after Nike Inc., one of its key brand partners, reported disappointing quarterly revenue and warned of further declines in the first half of fiscal 2027. Nike’s own stock dropped about 4% in premarket trading, adding to a 35% year-to-date loss.
Nike posted fiscal fourth-quarter revenue of $11 billion, down 1% from a year earlier, but beat Wall Street’s earnings estimate with adjusted EPS of 20 cents versus the 13 cents expected. However, management guided for low- to mid-single-digit revenue declines over the next six months, citing tariff pressures, geopolitical uncertainty, and cautious consumer spending. Greater China remained the biggest drag, with sales plunging 17% on a constant-currency basis, worsening from a 10% decline the prior quarter.
European sportswear peers Adidas and Puma also felt the pinch, each falling more than 1%. Analysts noted that while Nike’s renewed focus on sports and wholesale relationships is showing early progress in North America (revenue up 3%), the overall recovery timeline is being pushed out. Bernstein analysts remarked that prioritising marketplace health over near-term sales may delay meaningful earnings growth until at least the second half of fiscal 2027.
The knock-on effect on JD Sports highlights the retailer’s heavy reliance on Nike product. With Nike planning to tighten inventory and reduce orders, the outlook remains cautious for both companies.
