Deutsche Bank holds JD Sports with cautious outlook due to weak US sales and industry challenges.

Deutsche Bank has maintained a hold rating on JD Sports Fashion PLC, citing weaker second-quarter sales primarily due to deteriorating trends in the US market, JD Sports' largest region. The bank lowered its pre-tax profit forecast for 2027 by 6% to £725 million, near the lower end of the company's guidance. Industry-wide issues like increased promotions, excess inventory, and weak consumer demand in Europe, the Middle East, and Africa are limiting JD Sports' growth potential despite operational improvements. Deutsche Bank expects JD Sports to focus more on apparel, exclusive products, and digital investments while anticipating a slight decline in like-for-like sales in the second half of the year.