JD Sports has cut its full-year profit forecast after cost-of-living pressures, worsened by the US war on Iran, hit sales of trainers and other footwear, particularly in the United States. The retailer's shares fell 12% on the news, dropping to their lowest level since July, as investors reacted to signs that inflation is making shoppers more cautious about discretionary spending on both sides of the Atlantic.

The sportswear chain, which owns brands including JD, Blacks and Millets alongside stocking Nike and Adidas, now expects pre-tax profits of £700m to £800m, down from a previous forecast of £750m to £850m. Group like-for-like sales fell 3.1% in the second quarter, with North America hardest hit at -6.8% and Europe down 2.7%; JD blamed rising fuel costs linked to disruption in the Strait of Hormuz. The UK bucked the trend, boosted by World Cup-driven demand for football shirts and outdoor gear, while chief executive Régis Schultz said heavy discounting had been needed to support sales amid squeezed household budgets.