UBS cuts JD Sports target, warns of weak European demand and footwear sales ahead of update

UBS has lowered its price target for JD Sports Fashion to 86p from 87p, citing concerns over weakening demand in Europe and footwear sales ahead of the company's market update on August 20. Europe represents about 34% of JD Sports' sales, with footwear accounting for 60%, both areas showing signs of trouble based on recent industry results. UBS forecasts a 2.2% decline in like-for-like sales, with Europe down 3.5%, and has cut earnings forecasts for 2027-2029 by up to 2%. Despite these concerns, the shares trade at a relatively low valuation, and UBS suggests a sustained share price drop would require a significant earnings miss.