JD Sports' Growth Opportunities and Woes Linked to Nike
JD Sports has the opportunity to appeal to more types of customers in the U.S. and other regions, improve warehouse efficiency, and maintain its position as a preferred partner of major brands like Nike and Adidas. However, the company's woes are related to key supplier Nike, as the supply of new franchises will be constrained, hindering top-line momentum. JD Sports protected its gross margins but saw lower sales as a result, leading to a downgrade in full-year profit guidance. Shares are down 9.7% and 10% respectively.