On Thursday, shares in JD Sports Fashion (LON: JD) opened lower after the sportswear retailer reported a decline in profit in the six months through July. The company’s chairman Andrew Higginson said that the overall performance continues to be encouraging. However, he also stressed that it must also be recognised that the most material trading periods lie ahead.

It is inevitable to remain cautious considering the wider macroeconomic uncertainty, inflationary pressures and the potential for further disruption to the supply chain. He further said that the second half had started solidly, with sales up around 8 per cent from year-earlier levels in the first six weeks of the period.

Lately, JD Sports has had a volatile couple of years, with the pandemic causing first a decline in sales by closing its stores, then a jump due to stimulus payments in the US, driving a boom in consumer discretionary spending.
Results from the UK and Irish market remained weak, with profit declining to 153 million pounds from 174 million a year earlier. By contrast, its European stores registered a profit of 57 million pounds after losing 7 million a year earlier.

The outlook was not enough for JD Sports shares to avoid the general negativity in the wake of the Federal Reserve’s latest interest rate hike on Wednesday. The stock was down 4.6 per cent at a three-week low.